Core Viewpoint - The company's 2024 performance was below expectations, while 1Q25 performance exceeded expectations, driven by new product launches and improved gross margins [1][2]. Financial Performance - In 2024, the company reported revenue of 16.542 billion, a year-on-year increase of 6.7%, and a net profit of 806 million, up 31.7% [1]. - For 4Q24, revenue reached 6.316 billion, showing a year-on-year growth of 27.1%, with net profit soaring to 191 million, a significant increase of 2178% [1]. - In 1Q25, revenue was 3.858 billion, reflecting an 11.1% year-on-year growth, and net profit was 475 million, up 59.4% [1]. Business Segmentation - In 2024, the revenue growth for the brands Ecovacs and Tineco was 5% and 11% respectively, with overseas growth outpacing domestic growth [2]. - The overseas revenue for Ecovacs and Tineco brands increased by 12.6%, accounting for 42% of total revenue, with significant growth in the European market, where Ecovacs and Tineco saw revenue increases of 52% and 64% respectively [2]. Profitability and Cost Management - The company improved its gross margin in 2024, with a 4 percentage point increase for the Ecovacs brand due to a higher proportion of new products, leading to a 2 percentage point increase in overall gross margin [3]. - In 1Q25, the apparent gross margin rose by 3 percentage points to 49.7% [3]. - The company managed to control expenses, resulting in a decrease in sales, management, and R&D expense ratios in 2024 [3]. Development Trends - Domestic sales are driven by national subsidies and new product launches, with the introduction of mid-to-high-end products like the T80 and X9, as well as a new low-end product, the mini [4]. - The company anticipates that new products will penetrate overseas markets, with limited impact from tariffs [4]. Earnings Forecast and Valuation - The company maintains its earnings forecasts for 2025 and 2026, with the current stock price corresponding to 22.2 times and 19.9 times the earnings for 2025 and 2026 respectively [5]. - The target price remains at 62.68, implying an 18% upside potential from the current stock price [5].