KINGCLEAN(SH:603355) Tianfeng Securities·2025-04-16 05:23Investment Rating - The investment rating for the company is "Buy" with a target price expected to yield over 20% relative return within six months [6][17]. Core Views - The company is expanding its overseas production capacity, particularly in Vietnam and Thailand, to support its growth in the ODM/OEM and automotive parts sectors [2][4]. - The automotive parts and motor businesses are identified as new high-margin core businesses, contributing significantly to revenue growth [1][4]. - The company has opted not to distribute cash dividends for 2024 to reinvest profits into its long-term development strategy [1]. Financial Performance - In 2024, the company achieved a revenue of 9.77 billion yuan, a year-on-year increase of 11.06%, and a net profit of 1.23 billion yuan, up 10.17% [1][5]. - The gross margin for 2024 was 24.15%, a decrease of 1.46 percentage points year-on-year, while the net margin was 12.62%, down 0.11 percentage points [3][12]. - The company expects net profits for 2025-2027 to be 1.37 billion, 1.51 billion, and 1.66 billion yuan respectively, with corresponding P/E ratios of 9.2x, 8.3x, and 7.6x [4][5]. Business Segments - The revenue from automotive parts exceeded 2 billion yuan, marking a historical high, while the motor business also saw double-digit growth in sales and profits [1][3]. - The company is actively developing new business opportunities and has secured multiple projects with major European and American brands in the mid-to-high-end small kitchen appliances and electric bicycles [1][2]. Cost Management - The company reduced its sales expenses significantly in 2024, primarily due to decreased advertising and sales service costs [3][12]. - The financial expense ratio showed fluctuations mainly due to increased foreign exchange gains [3].