ECOVACS(603486) 国信证券·2024-09-06 02:40Investment Rating - The report maintains an "Outperform" rating for Ecovacs Robotics (603486 SH) [1][3] Core Views - Ecovacs achieved revenue of 6 98 billion yuan in H1 2024, a year-on-year decrease of 2 4%, with net profit attributable to the parent company increasing by 4 3% to 610 million yuan [1] - Q2 2024 revenue was 3 5 billion yuan, down 10 4% year-on-year, but net profit attributable to the parent company increased by 20 7% to 310 million yuan [1] - The company's overseas expansion, particularly in Europe, showed strong growth, with Ecovacs brand revenue in Europe increasing by 42 0% year-on-year in H1 2024 [1] - The Tineco brand achieved overseas revenue growth of 31 7% in H1 2024, with European revenue increasing by 66 1% [1] - Gross margin improved to 49 1% in H1 2024, with Q2 gross margin reaching 51 0%, driven by cost reductions in new products and increased overseas sales [1] Financial Performance - H1 2024 operating income was 6 98 billion yuan, with net profit attributable to the parent company of 610 million yuan [1] - Q2 2024 operating income was 3 5 billion yuan, with net profit attributable to the parent company of 310 million yuan [1] - The company's gross margin increased by 0 1 percentage points year-on-year to 49 1% in H1 2024, with Q2 gross margin up 3 5 percentage points to 51 0% [1] - Sales expense ratio decreased by 3 6 percentage points year-on-year to 30 8% in Q2 2024 [1] Overseas Expansion - Ecovacs brand overseas revenue grew by 11 3% year-on-year to 1 33 billion yuan in H1 2024 [1] - The company introduced new product categories such as window-cleaning robots and lawn mowing robots in overseas markets, with revenue from new categories more than doubling [1] - Tineco brand overseas revenue increased by 31 7% year-on-year to 1 34 billion yuan in H1 2024, with European revenue growing by 66 1% [1] Product Performance - Ecovacs brand domestic revenue declined in H1 2024 due to market competition and lower demand for cleaning appliances [1] - Tineco brand domestic revenue was under pressure due to price reductions in floor cleaning machines, despite a 16 4% increase in sales volume [1] - The company's new product cost reductions contributed to improved profitability [1] Future Projections - The report forecasts net profit attributable to the parent company of 1 36 billion yuan in 2024, 1 58 billion yuan in 2025, and 1 77 billion yuan in 2026 [1] - The company's PE ratio is expected to be 18x in 2024, 15x in 2025, and 14x in 2026 [1] Industry Trends - The domestic floor cleaning machine market showed a 7 0% year-on-year increase in retail sales and a 24 2% increase in sales volume in H1 2024 [1] - The average price of floor cleaning machines continued to decline, with Tineco's average price also showing a significant decrease [1]