Core Viewpoint - Ecovacs is a leading global enterprise in household service robots and cleaning small appliances, with strong technological accumulation and a complete industry chain advantage [1] Group 1: Business Performance - In Q3 2025, Ecovacs achieved a revenue of 12.877 billion yuan, ranking first in the industry, surpassing the industry average of 5.379 billion yuan and the median of 2.836 billion yuan, and exceeding the second-ranked Stone Technology's 12.066 billion yuan [2] - The net profit for the same period was 1.418 billion yuan, also ranking first in the industry, higher than the industry average of 462 million yuan and the median of 146 million yuan, and leading the second-ranked Stone Technology's 1.038 billion yuan [2] Group 2: Financial Ratios - As of Q3 2025, Ecovacs' debt-to-asset ratio was 47.18%, lower than the previous year's 47.53% and below the industry average of 47.40%, indicating good solvency [3] - The gross profit margin for Q3 2025 was 49.74%, up from 48.39% in the previous year and significantly higher than the industry average of 30.98%, demonstrating strong profitability [3] Group 3: Shareholder Information - As of September 30, 2025, the number of A-share shareholders decreased by 8.38% to 31,400, while the average number of circulating A-shares held per household increased by 9.63% to 18,200 [5] - Notable changes among the top ten circulating shareholders include Hong Kong Central Clearing Limited increasing its holdings by 5.7539 million shares, and the entry of new shareholders such as E Fund National Robot Industry ETF and Huaxia CSI Robot ETF [5] Group 4: Executive Compensation - The chairman, Qian Dongqi, received a salary of 2.3909 million yuan in 2024, a decrease of 160,700 yuan from 2023 [4] - The general manager, Zhuang Jianhua, received a salary of 1.8162 million yuan in 2024, down by 204,200 yuan from 2023 [4] Group 5: Future Projections - Investment recommendations suggest that the net profit for Ecovacs is expected to be 1.996 billion yuan, 2.420 billion yuan, and 2.927 billion yuan for 2025, 2026, and 2027 respectively, with corresponding EPS of 3.45, 4.18, and 5.05 yuan [5] - Another forecast estimates net profits of 2.020 billion yuan, 2.200 billion yuan, and 2.320 billion yuan for the same years, with corresponding EPS of 3.5, 3.8, and 4.0 yuan [6]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company benefited from national subsidies, leading to significant growth in revenue and profit in Q4 2024, with a total revenue of 16.54 billion yuan, up 6.7% year-on-year, and a net profit of 810 million yuan, up 31.7% year-on-year [2] - In Q4 2024, the company achieved a revenue of 6.31 billion yuan, a year-on-year increase of 27.1%, and a net profit of 190 million yuan, a remarkable year-on-year increase of 2178% [2] - The company is expected to benefit from the implementation of the old-for-new policy in 2025, which is anticipated to lead to a significant recovery in domestic demand for home appliances [2] Financial Performance Summary - For 2024, the company reported a total revenue of 16.54 billion yuan, with a year-on-year growth of 6.7%, and a net profit of 810 million yuan, reflecting a year-on-year increase of 31.7% [2] - In Q1 2025, the company achieved a revenue of 3.86 billion yuan, up 11.1% year-on-year, and a net profit of 470 million yuan, up 59.4% year-on-year, exceeding market expectations [2] - The gross profit margin for 2024 was 46.52%, an increase of 1.9 percentage points year-on-year, while the net profit margin was 4.87%, up 1.0 percentage point year-on-year [3] - The company’s sales gross margin in Q1 2025 was 49.7%, an increase of 4.4 percentage points year-on-year, and the net profit margin was 12.3%, up 3.7 percentage points year-on-year [3] Market Dynamics - The domestic market saw a significant boost in demand due to national subsidies, with the overall online sales and revenue of the sweeping robot industry in Q4 2024 increasing by 76% and 87% year-on-year, respectively [4] - The company is actively launching new products to address increasing market competition, and its product structure is continuously improving [4] - The company is expanding its global supply chain, with a new base in Vietnam to effectively mitigate tariff risks [4]