In 2024, the company achieved revenue of 11.93 billion yuan (+37.8%), net profit attributable to the parent company of 1.98 billion yuan (-3.4%), and net profit attributable to the parent company of 1.63 billion yuan (-11.0%). In 2024Q4 alone, the company achieved operating income of 4.92 billion yuan (+65.9%), net profit attributable to the parent company of 510 million yuan (-26.3%), and net profit attributable to the parent company of 440 million yuan (-23.3%). Affected by shortages and tariffs, we have lowered our profit forecast, and expect the net profit attributable to the parent company in 2024-2026 to be 19.8/23.0/2.90 billion yuan (original value 21.8/24.9/3.06 billion yuan), the corresponding EPS is 10.72/12.45/15.70 yuan, and the corresponding PE of the current stock price is 23.7/20.4/16.2 times. The company's revenue increased as scheduled after implementing a more active product and sales strategy, and released the world's first new robotic arm sweeper, which is expected to become a benchmark enterprise for the application of AI robot technology to the downstream, and its valuation is expected to increase, maintaining a "buy" rating.

2024Q4 All regions maintain good growth, 2025 domestic sales and national subsidies will continue, and overseas consumption is expected to return to prosperity According to Aowei cloud network and Jiuqian data, the performance of each region in 2024Q4 is as follows: (1) Domestic sales: online channel sales +104% year-on-year, sales market share of 25.1% (+2.2pcts), maintain the first echelon, of which 2000-3000, 3000-4000, 4000-5000 price segment sales market share of 31% respectively/ 24%/36%, ranking first/second/first place. (2) North America: Meiya sales +38%, offline channels smoothly stationed. (3) Europe: Deya's sales volume was +38% year-on-year, and offline channels are expected to recover well. (4) Asia-Pacific: Nichia's power tool parts sales were +63% year-on-year. Looking forward to 2025, the domestic sales and domestic subsidies will continue, and the export consumption boom is expected to rebound, and the company is optimistic that the company will continue to maintain high revenue growth under a more active product/sales strategy. In terms of domestic sales, in 2025, the cumulative volume/price of sweeper online channels (as of February 23) will be +57%/+9% year-on-year respectively, of which stone will be +91%/+3% year-on-year respectively; In terms of export sales, the sales volume of Stone 2025M1 Meiya and Deya was +30%/+78% year-on-year respectively, and the active strategy gradually began to show results.

Profitability is under pressure under multiple factors such as out of stock, tariffs and saturated marketing, and it is expected to bottom out and stabilize in 2024Q4 The company's net profit margin attributable to the parent company is 10.3% (-13.0pct), deducting 8.9% (-10.4pct), and the pressure is expected to be mainly due to: (1) The company's products have been out of stock since the end of October under the hot sales of national subsidies, and the delivery time has exceeded 1 month. It takes time to superimpose receipt confirmation, and most of the revenue is included in 2025Q1; (2) Most of the products sold to the United States in the fourth quarter were affected by the additional tariffs; (3) Under saturated marketing, the company has planned a number of brand marketing events out of the circle, such as "sweeping machine on space", "drying a city", cooperating with Swedish table tennis star Moregaard, etc., superimposed at home and abroad to promote the flow of high-rate channels such as Douyin/Eurasia The proportion has increased, and the sales rate is expected to increase structurally; (4) The company continues to strengthen the layout of all price bands at home and abroad, accelerate R&D and launch of new products in multiple categories, and it is expected that the R&D & management fee rate will increase. We believe that the company voluntarily gave up the high net profit margin in order to better revenue and share growth & reduce the competition space, and the net profit margin is expected to bottom out and stabilize.

Since 2025, the company has successively released a number of new products, including the world's first robotic arm equipped with the world's first robotic arm, which can realize object clamping and movement, further expanding the boundaries of capabilities and approaching the form of home service robots; The A30 Pro Steam continues the A30 series' well-received functions of 0 entanglement, 0 dead ends, and 0 burdens, and is the world's first dual floor scrubbing mode, in which 150°C steam washing can dissolve stains at high temperature and effectively kill bacteria and viruses; 86°C hot water washing, suitable for cleaning in heavy oil stains such as kitchens. The company's new products maintain the leadership of product strength, and are expected to continue to broaden the moat with the accumulation of algorithms, and drive the valuation increase as a benchmark for the downstream application of AI robots.

Risk warning: new product sales are less than expected; the risk of increased competition; Demand is lower than expected amid high inflation overseas.