ECOVACS(SH:603486) Huachuang Securities·2025-08-19 07:19Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 110 yuan [2][8]. Core Views - The company reported a revenue of 8.68 billion yuan for the first half of 2025, representing a year-on-year increase of 24.4%, and a net profit attributable to shareholders of 980 million yuan, up 60.8% year-on-year [2][8]. - The second quarter of 2025 saw a revenue of 4.82 billion yuan, a 37.6% increase year-on-year, and a net profit of 510 million yuan, reflecting a 62.2% year-on-year growth [2][8]. - The acceleration in revenue growth is attributed to government subsidies and promotional events, alongside strong performance from the company's brand products [8]. - The company is expanding its overseas market presence, with a 66.6% year-on-year increase in foreign sales revenue in Q2 2025 [8]. Financial Summary - Total revenue projections for 2025 are estimated at 19.71 billion yuan, with a year-on-year growth rate of 19.1% [4]. - The net profit attributable to shareholders is projected to reach 2 billion yuan in 2025, reflecting a significant year-on-year growth of 148.1% [4]. - Earnings per share (EPS) are forecasted to be 3.48 yuan for 2025, with corresponding price-to-earnings (P/E) ratios of 26, 23, and 21 for the years 2025, 2026, and 2027 respectively [4][8]. - The company’s gross margin is expected to stabilize around 50.3% in the coming years, with a net profit margin projected to improve to 10.2% in 2025 [4][8].