Investment Rating - The investment rating for the company is "Outperform the Market" [6][4]. Core Views - The company has shown a significant recovery in operations and profitability, with a revenue of $1.77 billion in 2024, representing a year-on-year growth of 29.0%. The second half of the year saw a revenue of $950 million, up 49.5% year-on-year. The net profit attributable to shareholders reached $112 million, marking a turnaround from losses [1][2]. - All business lines have experienced strong growth, particularly in North America, where revenue rebounded significantly post-inventory destocking [1]. - The company plans to sell its entire stake in a subsidiary, which will allow it to focus on its core business and enhance shareholder value. A special dividend of HKD 1.1905 per share is proposed, totaling approximately HKD 608 million [3]. Summary by Sections Financial Performance - In 2024, the gross margin improved by 6.6 percentage points to 34.7%, driven by scale recovery and operational efficiency. The net profit margin increased by 9.0 percentage points to 6.3% [2]. - The company reported a significant reduction in expense ratios across sales, management, and R&D, contributing to improved profitability [2]. Revenue Breakdown - The Outdoor Power Equipment (OPE) segment generated $1.01 billion, a 24.2% increase, while the electric tools segment saw revenue of $750 million, up 36.3% [1]. - Revenue by region for 2024 was $1.29 billion in North America (+37.5%), $310 million in Europe (+11.2%), $110 million in China (+9.8%), and $56 million in other regions (+8.9%) [1]. Future Projections - The company expects net profits of $121 million, $143 million, and $168 million for 2025, 2026, and 2027, respectively, with year-on-year growth rates of 7%, 19%, and 17% [4][5]. - The projected earnings per share (EPS) for 2025, 2026, and 2027 are $0.24, $0.28, and $0.33, respectively, with corresponding price-to-earnings (PE) ratios of 10, 9, and 7 [4][5].
泉峰控股（02285）：经营走出底部，盈利快速修复