ECOVACS(603486) Guolian Securities·2024-10-31 13:30Investment Rating - The investment rating for the company is "Buy" and is maintained [4][6]. Core Views - The company's Q3 revenue performance met expectations, but increased expenses impacted profitability. With the launch of new products at various price points and enhanced overseas market expansion, coupled with domestic policy catalysts, revenue and profit improvements are anticipated in Q4 [2][6]. - The company achieved a revenue of 10.226 billion yuan in the first three quarters of 2024, a year-on-year decrease of 2.90%, while the net profit attributable to shareholders was 615 million yuan, an increase of 1.88% year-on-year [6][7]. - In Q3 2024, the company reported a revenue of 3.250 billion yuan, down 4.06% year-on-year, and a net profit of 6 million yuan, down 69.21% year-on-year [6][9]. Summary by Sections Financial Performance - The company’s revenue for Q3 2024 was 3.250 billion yuan, with a year-on-year decline of 4.06%. The net profit attributable to shareholders was 6 million yuan, reflecting a significant year-on-year decrease of 69.21% [6][9]. - The gross profit margin for Q3 2024 increased by 0.90 percentage points year-on-year, while the sales expense ratio rose by 2.97 percentage points due to increased marketing expenses for pre-sales [6][10]. Market Outlook - The company expects domestic sales to improve due to the "old-for-new" policy, with retail sales of sweeping and washing machines showing a mixed performance in Q3 2024 [6][10]. - High-frequency data from October indicates a significant increase in sales, with online and offline sales rising by 261% and 115% year-on-year, respectively, suggesting a strong recovery in Q4 [6][10]. Future Projections - Revenue projections for 2024-2026 are 16.081 billion yuan, 17.400 billion yuan, and 18.681 billion yuan, representing year-on-year growth rates of 3.73%, 8.20%, and 7.36%, respectively. Net profit attributable to shareholders is expected to be 1.199 billion yuan, 1.355 billion yuan, and 1.516 billion yuan for the same period, with corresponding growth rates of 95.92%, 12.97%, and 11.87% [6][7][10].