ECOVACS(SH:603486) Guotou Securities·2025-08-17 01:05Investment Rating - The investment rating for the company is maintained at "Buy-A" with a target price of 112.28 CNY for the next six months [4]. Core Insights - The company reported a significant revenue growth of 24.4% year-on-year (YoY) in H1 2025, reaching 8.68 billion CNY, and a net profit growth of 60.8% YoY, amounting to 980 million CNY. In Q2 alone, revenue surged by 37.6% YoY to 4.82 billion CNY, with net profit increasing by 62.2% YoY to 500 million CNY [1][2]. - The growth is attributed to the continuous demand boost from domestic subsidy policies for cleaning appliances, with online sales of the company's products increasing significantly in both domestic and overseas markets [1][2]. - The company is focusing on optimizing its cost structure and enhancing operational efficiency across R&D, supply chain, and manufacturing, which is expected to sustain revenue and profit growth [1][2]. Financial Performance Summary - The company's gross margin in Q2 was stable with a slight decrease of 0.4% YoY, while the net profit margin improved by 1.6 percentage points YoY to 10.5% [2]. - The company has successfully reduced management and R&D expense ratios by 1.1 percentage points and 0.8 percentage points YoY, respectively, contributing to improved profitability [2]. - The forecasted earnings per share (EPS) for 2025, 2026, and 2027 are projected to be 2.95 CNY, 3.45 CNY, and 4.10 CNY, respectively, indicating a positive growth trajectory [2][3]. Market Position and Strategy - The company is recognized as a leader in the robotic vacuum cleaner industry, leveraging its technological, channel, and supply chain advantages to optimize product offerings and cost structures [2]. - The increasing penetration of vacuum cleaners in the market presents significant growth opportunities, and the company's strategic adjustments are expected to enhance its profitability [2]. Revenue and Profit Forecast - The company's revenue is projected to grow from 15.5 billion CNY in 2023 to 26.55 billion CNY by 2027, with net profit expected to rise from 610 million CNY to 2.36 billion CNY over the same period [3][12]. - The net profit margin is anticipated to improve from 3.9% in 2023 to 8.9% by 2027, reflecting the company's operational efficiency and market growth [3][12].