ECOVACS(SH:603486) HUAXI Securities·2025-10-27 14:25Investment Rating - The investment rating for the company is "Buy" [5] Core Views - The company reported a significant increase in revenue and profit for the first three quarters of 2025, with total revenue reaching 12.88 billion yuan, a year-on-year increase of 25.9%, and net profit attributable to shareholders of 1.42 billion yuan, up 130.6% [1] - The growth in revenue is attributed to strong sales of cleaning appliances, particularly the roller series products, despite challenges in domestic sales due to subsidy reductions [2] - The gross profit margin improved significantly, reaching 49.8% in Q3 2025, an increase of 7.7 percentage points year-on-year, primarily due to the higher sales proportion of roller series products [3] Revenue Summary - For Q3 2025, the company achieved revenue of 4.2 billion yuan, a year-on-year increase of 29.3%, with net profit soaring to 440 million yuan, reflecting a staggering increase of 7160.9% [1] - The online sales growth rates for the company's brands in Q3 were impressive, with the Ecovacs brand's floor cleaning machines growing by 122% year-on-year and the Tineco brand's washing machines by 35% [2] Profit Summary - The net profit margin for Q3 2025 was 10.4%, an increase of 10.2 percentage points year-on-year, driven by the substantial rise in gross profit margin [3] - The company expects to maintain a strong profit trajectory, with projected net profits of 1.99 billion yuan, 2.42 billion yuan, and 2.93 billion yuan for 2025, 2026, and 2027, respectively, reflecting year-on-year growth rates of 146.67%, 21.61%, and 21.23% [4] Financial Forecast - Revenue forecasts for 2025, 2026, and 2027 are set at 20.11 billion yuan, 23.04 billion yuan, and 26.52 billion yuan, representing year-on-year growth rates of 21.55%, 14.57%, and 15.10% [4] - The earnings per share (EPS) are projected to be 3.46 yuan, 4.20 yuan, and 5.10 yuan for the same years, with corresponding price-to-earnings (PE) ratios of 27.15, 22.33, and 18.42 [4]