Event description

The company released the 2024 annual report, and in 2024, the company achieved operating income of 11.945 billion yuan, a year-on-year increase of 38.03%, a net profit attributable to the parent company of 1.977 billion yuan, a year-on-year decrease of 3.64%, and a net profit of 1.620 billion yuan, a year-on-year decrease of 11.26%; Among them, in Q4 of 2024, the company achieved operating income of 4.938 billion yuan, a year-on-year increase of 66.54%, a net profit attributable to the parent company of 504 million yuan, a year-on-year decrease of 26.99%, and a net profit of 434 million yuan, a year-on-year decrease of 24.11%.

Event Comment

Driven by external trade-in, superimposed on a more active competition strategy, the company's domestic and foreign sales have achieved a bright growth rate.

In 2024A/2024H2/2024Q4, the company's revenue increased by 38.03%/42.59%/66.54% year-on-year respectively. In terms of categories throughout the year, the company's revenue from smart sweepers and accessories/other smart electrical products increased by 34.17%/93.13% year-on-year respectively, and the corresponding sales volume increased by 32.91%/141.46% year-on-year respectively, and sales growth was the main driver of revenue growth. In terms of sub-regions throughout the year, the company's domestic / export revenue increased by 25.39%/51.06% year-on-year respectively, externally, the trade-in policy has greatly boosted the growth of demand for domestic sweeper products, and the total caliber of Aowei cloud network has been pushed by Aowei Cloud Network, 2024Q4 Omni-channel sales of sweeping robots increased by 70.29% year-on-year, internally, the company further enriched the product matrix and price matrix, focused on breakthroughs in the mainstream price segment, and further optimized the sales structure through active market strategies. Achieve outstanding growth in domestic and foreign sales revenue. According to IDC, in 2024, the company will achieve the first place in both volume and volume in the global sweeper market, surpassing iRobot for the first time in terms of shipments, and the annual global sales/sales share will reach 16%/22.3% respectively.

Tariff disturbances and increased investment have increased, and the company's earnings performance has declined in stages. In 2024, the gross profit margin of the company's main business will reach 50.36%, a decrease of 3.75pct compared with 2023, and it is expected that the increase in external tariffs and the company's adoption of a more active competition strategy will have an impact, In terms of products, the gross profit margin of smart sweepers and accessories/other smart products will reach 52.07%/33.00% respectively, down 2.87/9.10pct respectively from 2023; The gross profit margin of domestic sales/export sales under the regional report caliber reached 46.49%/53.70% respectively, down 1.56/6.74pct year-on-year respectively. On the expense side, the company's annual sales/management/R&D/financial rates reached 24.84%/2.89%/8.13%/-1.35% respectively, and the year-on-year growth was 5.05/0.46/0.98/0.25pct after retrospective to the base in 2023, and the sales expenses were significantly increased. Under the comprehensive impact, the company's annual net profit margin attributable to the parent company/net profit margin after deducting non-attributable to the parent company reached 16.55%/13.57% respectively, down 7.16/7.54pct year-on-year, respectively. In terms of single Q4, the company's gross profit margin after retrospective reached 44.86%, down 9.93pct year-on-year, and the sales rate/management rate/R&D rate/financial rate reached 28.43%/2.28%/6.71%/-0.94% respectively, which was +6.76 pct /+0.94 pct /+0.94 pct / flat year-on-year, and the company's single Q4 net profit margin attributable to the parent / net profit margin deducted from non-attributable to the parent reached 10.21%/8.80% respectively under the comprehensive influence. They decreased by 13.09/10.51pct year-on-year, respectively.

Investment suggestion: As a leading enterprise of clean electrical appliances, the company drives product iteration and upgrading with technology, and the domestic and global markets are advancing simultaneously, and already has a high brand recognition, and in 2024, the company has reached the first place in the global sweeper market volume, we believe that with the further improvement of consumers' awareness of sweeper products, and the adaptability of product dimensions, the sweeper market has broad prospects. At the same time, the company is expected to further enhance its market share through technology and product leadership and excellent brand image, and achieve higher growth in scale and profits, and we expect the company's net profit attributable to the parent company in 2025-2027 to be 22.18, 29.61 and 3.614 billion yuan respectively, corresponding to PE of 15.4, 11.5 and 9.4 times respectively, maintaining a "buy" rating.



Risk Reminder 1. The risk of demand fluctuation caused by the uncertainty of the economic situation; 2. The intensification of competition in the industry brings downside risks in share and profits.