ECOVACS(SH:603486) EBSCN·2025-04-29 06:00Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company has shown continuous improvement in operations, with significant growth in overseas sales [1][6] - In 2024, the company achieved total revenue of 16.5 billion yuan, a year-on-year increase of 7%, and a net profit of 800 million yuan, up 32% year-on-year [5][6] - The company’s revenue for Q4 2024 reached 6.3 billion yuan, representing a 27% year-on-year growth, with net profit soaring by 2178% [5][6] - The company’s dual-brand strategy (Ecovacs and Tineco) continues to perform well, with overseas revenue growing by 13% [6] Summary by Sections Financial Performance - In 2024, the company reported total revenue of 165 billion yuan, with a net profit of 8 billion yuan, reflecting a 32% increase year-on-year [5] - For Q1 2025, revenue was 39 billion yuan, with net profit around 4.7 billion yuan, a 59% increase year-on-year [5] - The profit distribution plan for 2024 includes a cash dividend of 4.5 yuan per 10 shares, resulting in a cash dividend rate of 32% [5] Revenue Breakdown - The Ecovacs and Tineco brands generated revenue of 8.1 billion yuan each in 2024, with domestic sales increasing by 5% and overseas sales by 13% [6] - In Q4 2024, domestic online sales for Ecovacs increased by 57%, while offline sales surged by 176% [6] Profitability and Cost Management - The gross margin for 2024 was 46.5%, improving to 49.7% in Q1 2025, driven by product mix enhancement and cost optimization [7] - The net profit margin for 2024 was 4.9%, increasing to 12.3% in Q1 2025 [7] Future Outlook - The company’s net profit forecasts for 2025 and 2026 have been raised to 1.33 billion yuan and 1.56 billion yuan, respectively, reflecting an increase of 9% and 15% from previous estimates [7] - The current stock price corresponds to a PE ratio of 23 for 2025, indicating a favorable valuation based on growth potential [7]