ECOVACS(SH:603486) Haitong Securities International·2025-07-15 00:35Investment Rating - The report maintains an "OUTPERFORM" rating for the company [2][5]. Core Views - The company is expected to achieve a net profit of RMB 960 million to RMB 990 million for the first half of 2025, representing a year-on-year growth of 57.64% to 62.57% [3][9]. - The company has shown strong performance in both online and offline channels, with a 25% year-on-year growth in domestic revenue and a revenue growth rate exceeding 40% in Q2 2025 [4][10]. - The Ecovacs brand has maintained excellent performance since Q4 2024, with over 60% growth in Q2 2025 [4][10]. Financial Summary - Revenue projections for the company are as follows: - 2024: RMB 16,542 million - 2025E: RMB 19,811 million (20% growth) - 2026E: RMB 22,375 million (13% growth) - 2027E: RMB 24,866 million (11% growth) [2][4]. - Net profit projections are as follows: - 2024: RMB 806 million - 2025E: RMB 1,824 million (126% growth) - 2026E: RMB 2,009 million (10% growth) - 2027E: RMB 2,283 million (14% growth) [2][4]. - The expected diluted EPS for the years 2025 to 2027 are RMB 3.17, RMB 3.49, and RMB 3.97 respectively [2][11]. Valuation - The company is assigned a 25x PE valuation for 2025, leading to a target price of RMB 79.25 [5][11].