GreatStar(SZ:002444) EBSCN·2025-04-24 10:25Investment Rating - The report maintains a "Buy" rating for the company, indicating a strong outlook for investment returns over the next 6-12 months [6]. Core Insights - The company achieved a revenue of 14.795 billion yuan in 2024, representing a year-on-year growth of 35.4%, and a net profit attributable to shareholders of 2.304 billion yuan, up 36.2% year-on-year [2][3]. - The company benefits from a global supply chain advantage with 23 manufacturing bases, which supports capacity release to meet demand in the DIY market in Europe and the US [3]. - The company has successfully expanded its product categories, launching 1,937 new products with a research and development investment of 366 million yuan [3]. - The company's self-owned brands, such as WORKPRO, saw a revenue increase of 36% year-on-year [3]. - The company’s revenue from hand tools reached 10.069 billion yuan, up 40.5% year-on-year, while electric tools revenue was 1.438 billion yuan, growing 36.5% year-on-year [3]. - The company’s gross profit margin for 2024 was 32.0%, a slight increase of 0.2 percentage points year-on-year [2][3]. Revenue and Profit Forecast - The company’s revenue is projected to grow to 17.334 billion yuan in 2025, with a growth rate of 17.16%, and to 19.928 billion yuan in 2026, with a growth rate of 14.97% [5][10]. - The net profit attributable to shareholders is expected to reach 2.568 billion yuan in 2025 and 3.063 billion yuan in 2026, reflecting growth rates of 11.46% and 19.31% respectively [5][10]. Financial Metrics - The company’s earnings per share (EPS) for 2024 is projected at 1.93 yuan, with a return on equity (ROE) of 14.04% [5][12]. - The company’s gross profit margin is expected to remain stable, with slight fluctuations projected for the coming years [12]. - The company’s asset-liability ratio is forecasted to be 28% in 2024, decreasing to 18% by 2027, indicating improving financial stability [12]. Market Position and Strategy - The company has a significant market presence in the Americas and Europe, with revenue shares of 63.4% and 24.6% respectively [4]. - The company’s OBM (Own Brand Manufacturer) and ODM (Original Design Manufacturer) business models account for 47.9% and 51.7% of revenue, with OBM showing higher growth potential [4]. - The company is focusing on expanding its overseas business, particularly in non-US regions, which is expected to drive future growth [4].