The company released its 2024 annual report:

Q4: revenue of 4.938 billion yuan (+66.54% year-on-year), net profit attributable to the parent company of 504 million yuan (-26.99% year-on-year); net profit of 434 million yuan (-24.11% year-on-year); 24 years: revenue of 11.945 billion yuan (+38.03% year-on-year), net profit attributable to the parent company of 1.977 billion yuan (-3.64% year-on-year); net profit after deducting non-attributable to the parent company was 1.620 billion yuan (-11.26% year-on-year).

Single-quarter revenue was better, and profitability fluctuated.

Revenue Analysis: Q4 Domestic Sales Expected to Be Faster Than Export

Sales Q4 Domestic Sales: We expect revenue growth to be slightly less than +100% YoY and faster than Q3 (+30% expected).

Q4 beneficiary countries subsidize the rapid growth, referring to Aowei, the online share of stone washing machines/washing machines increased, and Q4 was +6/+1pct month-on-month respectively;

Q4 Exports: We expect revenue growth to be +50% YoY+ faster than Q3 (expected to grow by a single digit). Among them, Europe/North America/Asia-Pacific is expected to be +50%+/+50%+/30%+ year-on-year respectively; The increase in the proportion of direct sales in Europe affects Q3 However, Q4 concentrated on confirmation, and it is expected that the growth rate of online and offline Q4 revenue in Europe and North America will double.

Profit analysis: Q4 gross profit/expense ratio fluctuated

Q1/Q2/Q3/Q4 net profit margin was 21.66%/28.04%/13.57%/10.21% respectively, of which Q4 gross profit/net profit margin was -9.9/-13.1pct year-on-year respectively, Q4 sales/management/R&D/financial expense rate was +6.8/+0.9/+0.9/-0.002pct year-on-year respectively, gross profit margin and sales expense rate fluctuated greatly, We analyze the reasons:

Gross profit margin: (1) The average price of domestic sales has widened, referring to Aowei, the average price of domestic sales on the stone Q4 domestic sales line is -7%/-2% year-on-year/month-on-month respectively; (2) It is expected that the proportion of waist products sold abroad will increase, and the old products or price reductions will be cleared under the Q4 promotion; (3) the impact of North American tariffs;

Net profit margin: In addition to the factors affecting gross profit margin, (4) under the competition for market share in Q4 major promotion companies, marketing expenses have increased; (5) The income of floor scrubbers and washing machines is high, but they are in the investment stage, which affects the profit structure.

Dividend: The company plans to distribute 1.07 yuan per share, with a total dividend of 198 million yuan and a dividend rate of 10%.

Highlights of the company's 25 years

Channel increment: focus on the company's 25-year European channel restructuring (the company may increase the proportion of online direct sales and introduce a competition mechanism for offline agents) + offline expansion in the United States + expansion in emerging markets; Product price band expansion: pay attention to the company's high-end models to make up for the price ceiling (the new G30/G30Space launch price is 5499/6499 yuan respectively) + price sinking to expand the price band (increase the proportion of new products instead of old products, pay attention to the improvement of gross profit margin).

Tariff response: Focus on the possibility of companies hedging tariffs by optimizing their supply chains and adjusting prices appropriately based on market demand.

Investment Advice:

Our Opinion:

Under the heavier share of the company's strategic change period, we have repeatedly emphasized that the company's final profitability is affected by "multiple variables" ((1) technological upgrading; (2) Pricing widening; (3) supply chain optimization; (4) Europe increases the proportion of direct sales; (5) U.S. offline initial investment), and offsetting each other. In the long run, there is still a lot of room for the company's global market development, and we will pay attention to the company's change option and the opportunity of over-falling after the 25-year stock price adjustment.

Earnings Forecast: Based on the company's heavier share during the strategic change period, we have adjusted our 25-26 earnings forecast and added a new 27-year earnings forecast. It is estimated that the company's revenue in 2025-2027 will be 150.60/173.43/19.315 billion yuan (25-26 years ago, 14.465/16.642 billion yuan), a year-on-year increase of +26.1%/+15.2%/+11.4%, and the net profit attributable to the parent company will be 20.58/26.07/3.054 billion yuan (25-26 years ago, 21.75/2.641 billion yuan), a year-on-year increase of +4.1%/+26.7%/+17.1%; Corresponding to PE 20/16/14X, maintain "buy" rating.

Risk Warning: The

demand is less than expected, the development of new products is less than expected, and the development of overseas markets is less than expected.