Core Viewpoint - The company reported strong financial performance for 2024, with revenue of 24.71 billion and a year-on-year growth of 41.1%, and a net profit of 2.11 billion, up 30.9% year-on-year, exceeding previous expectations [1] Financial Performance - In Q1 2025, the company achieved revenue of 5.99 billion, representing a year-on-year increase of 36.9%, and a net profit of 0.50 billion, which is a 59.6% increase year-on-year [2] - For 2024, the company's energy storage business revenue grew by 184%, with significant contributions from various product categories [2][3] - The revenue breakdown for 2024 shows charging storage, smart innovation, and smart audio categories generating 12.67 billion, 6.34 billion, and 5.69 billion respectively, with year-on-year growth rates of 47.2%, 39.5%, and 32.8% [2] Product and Market Development - The company has focused on continuous innovation and product iteration, launching new energy storage solutions such as the SOLIX Solarbank 2 and SOLIX X1 for overseas markets [3] - Online and offline revenue for 2024 reached 17.60 billion and 7.11 billion respectively, with year-on-year growth of 43.0% and 36.7%, highlighting the effectiveness of both independent and third-party platforms [3] Cost and Profitability Metrics - The gross margin for 2024 was 43.7%, a slight increase of 0.1 percentage points year-on-year, attributed to product structure optimization [3] - The sales expense ratio was 22.5%, up 0.3 percentage points year-on-year, mainly due to increased marketing and platform costs [3] - The net profit margin for 2024 was 8.6%, down 0.7 percentage points year-on-year [3] Future Outlook and Valuation - The company forecasts net profits of 2.416 billion, 2.828 billion, and 3.344 billion for 2025-2027, with corresponding EPS of 4.55, 5.32, and 6.29 [4] - Due to increased tariff risks, revenue and profit expectations for 2025 and 2026 have been adjusted downward [4] - The company maintains a "buy" rating with a target price of 100.1, based on a 22x PE for 2025 [4]

Investment Rating - The investment rating for the company is "Buy" with a target price of 100.10 RMB [6][7]. Core Views - The company reported a revenue of 24.71 billion RMB in 2024, a year-on-year increase of 41.1%, and a net profit of 2.11 billion RMB, up 30.9% year-on-year, exceeding previous expectations [1]. - In Q1 2025, the company achieved a revenue of 5.99 billion RMB, representing a 36.9% year-on-year growth, and a net profit of 500 million RMB, which is a 59.6% increase year-on-year [1]. - The growth is attributed to product innovation and optimization of the product structure, along with increased foreign exchange gains [1]. - The company is expected to maintain a long-term upward trend despite short-term disruptions from increased tariffs on domestic goods by the US [1]. Revenue and Profit Analysis - In 2024, the revenue from the energy storage business surged by 184% year-on-year, with total revenues from charging storage, smart innovation, and smart audio categories reaching 12.67 billion RMB, 6.34 billion RMB, and 5.69 billion RMB respectively, with year-on-year growth rates of 47.2%, 39.5%, and 32.8% [2]. - Online and offline revenues for 2024 were 17.6 billion RMB and 7.11 billion RMB, reflecting increases of 43.0% and 36.7% respectively, with independent site revenue growing by 101.3% [2]. Cost and Margin Insights - The gross margin for 2024 was 43.7%, a slight increase of 0.1 percentage points year-on-year, primarily due to product structure optimization [3]. - The sales expense ratio was 22.5%, up 0.3 percentage points year-on-year, driven by increased marketing and platform costs [3]. - The R&D expense ratio increased to 8.5%, up 0.45 percentage points year-on-year, while the financial expense ratio decreased to 0.1% due to increased foreign exchange gains [3]. Profit Forecast and Valuation - The forecasted net profits for 2025, 2026, and 2027 are 2.42 billion RMB, 2.83 billion RMB, and 3.34 billion RMB respectively, with corresponding EPS of 4.55 RMB, 5.32 RMB, and 6.29 RMB [4]. - The average PE for comparable companies in 2025 is expected to be 22 times, and the company is assigned a 2025 PE of 22 times, leading to a target price of 100.1 RMB [4]. Financial Metrics Overview - The projected revenue for 2025 is 30.95 billion RMB, reflecting a growth rate of 25.25% [5]. - The net profit for 2025 is expected to be 2.42 billion RMB, with a growth rate of 14.26% [5]. - The company’s ROE is projected to be 21.65% in 2025, indicating strong profitability [5].