ECOVACS(SH:603486) Tianfeng Securities·2025-04-28 09:14Investment Rating - The investment rating for the company is "Buy" with a target price indicating an expected relative return of over 20% within six months [5][16]. Core Insights - The company achieved a total revenue of 16.54 billion yuan in 2024, representing a year-on-year growth of 6.71%, and a net profit of 806 million yuan, which is a 31.7% increase year-on-year. In Q4 2024, the revenue reached 6.32 billion yuan, showing a significant year-on-year growth of 27.07%, while the net profit surged to 191 million yuan, marking a staggering increase of 2178.04% [1][2]. - The company is focusing on expanding its overseas market presence, with notable revenue growth in Europe, where the company's brands saw revenue increases of 51.6% and 64.0% respectively [1][3]. - The gross margin for 2024 was 46.52%, a slight decrease of 0.98 percentage points year-on-year, while the net margin improved by 0.93 percentage points to 4.87% [2][4]. Financial Performance Summary - The company’s revenue is projected to grow from 16.54 billion yuan in 2024 to 19.00 billion yuan in 2025, reflecting a growth rate of 14.89% [4]. - The net profit is expected to increase significantly from 806 million yuan in 2024 to 1.77 billion yuan in 2025, indicating a growth rate of 120.19% [4]. - The earnings per share (EPS) is forecasted to rise from 1.40 yuan in 2024 to 3.09 yuan in 2025 [4]. Product and Market Strategy - The company is enhancing its product matrix and price range to cater to different consumer needs while maintaining technological leadership [3]. - The sales of the flagship robotic vacuum models, T50 and X8 series, have significantly contributed to market share growth in the mid-to-high price segments [1][3]. - The company is actively investing in marketing and sales efforts, with a notable increase in sales expenses due to higher advertising and platform service costs [2][3].