Investment Rating - The investment rating for the company is maintained at "Buy" with a target price of RMB 11.16 [7][8]. Core Views - The company reported a revenue of RMB 3.531 billion for 2024, representing a year-on-year increase of 11.98%, and a net profit attributable to shareholders of RMB 142.38 million, up 30.95% year-on-year. The first quarter of 2025 saw a revenue increase of 8.6% year-on-year and a net profit increase of 1.15% year-on-year [1][2]. - The performance differentiation is primarily due to the underperformance of the cleaning appliance category, while the water health and personal care segments showed strong results. The company is expected to benefit from policy incentives and improved supply chain and channel strategies [1][2]. - The gross margin for 2024 is reported at 30.6%, a slight decrease of 0.17 percentage points year-on-year, with the cleaning and water health segments experiencing notable margin pressures [3]. - The company is actively pursuing management reforms to reduce operational costs, achieving a decrease in expense ratios in 2024 [4]. - Despite a downward revision of profit forecasts due to weak performance in cleaning appliances, the company is expected to benefit from replacement subsidies and overseas expansion opportunities [5]. Summary by Sections Financial Performance - Revenue for 2024 is projected at RMB 3.531 billion, with a growth rate of 11.98%. The net profit attributable to shareholders is expected to reach RMB 142.38 million, reflecting a 30.95% increase [6]. - The first quarter of 2025 shows a revenue increase of 8.6% year-on-year and a net profit increase of 1.15% [1][2]. Segment Performance - The cleaning appliance segment generated RMB 1.383 billion in revenue for 2024, a slight decline of 0.45% year-on-year, underperforming the industry average growth of 24.4% [2]. - The water health segment achieved a revenue of RMB 1.39 billion, up 19.5% year-on-year, while the personal care segment reached RMB 730 million, growing by 27% [2]. Cost Management - The company successfully reduced its expense ratio by 1.01 percentage points in 2024, with sales and management expenses decreasing by 1.69% and 0.13% respectively [4]. Profit Forecasts - The net profit forecasts for 2025, 2026, and 2027 are RMB 165.07 million, RMB 176.52 million, and RMB 187.32 million respectively, with corresponding EPS of RMB 0.36, RMB 0.38, and RMB 0.41 [5][6].
德尔玛：飞利浦品牌驱动，享受政策红利-20250425