KINGCLEAN(603355) 华创证券·2025-05-18 00:45Investment Rating - The report maintains a "Recommended" rating for the company with a target price of 26.5 CNY [2][8]. Core Views - The company's revenue for Q1 2025 was 2.39 billion CNY, showing a year-on-year increase of 3.2%, while the net profit attributable to shareholders was 230 million CNY, down 16.2% year-on-year [2][8]. - The decline in profitability is attributed to a faster growth rate in lower-margin export sales compared to domestic sales, leading to a decrease in overall gross margin [2][8]. - The company is actively optimizing its business and product structure, focusing on high-end brands and developing its automotive parts business, which is expected to create a second growth curve [2][8]. - The establishment of production bases in Vietnam and Thailand is expected to enhance the company's ability to mitigate potential tariff risks [2][8]. Financial Summary - For 2024A, total revenue is projected at 9.765 billion CNY, with a year-on-year growth rate of 11.1%. The net profit is expected to be 1.23 billion CNY, with a growth rate of 10.2% [4][9]. - The earnings per share (EPS) for 2025E is estimated at 2.19 CNY, with a corresponding price-to-earnings (P/E) ratio of 10 [4][9]. - The company’s gross margin for Q1 2025 was 23.4%, a decrease of 2.5 percentage points year-on-year [2][8]. - The company’s total assets are projected to reach 14.098 billion CNY by 2025E, with a debt-to-equity ratio of 102.4% [9].