Viomi Stock: Financial Turnaround Fuels Growth Prospects

Viomi Technology Co., Ltd, a leading Chinese home water solutions provider, has reported a remarkable financial recovery for fiscal year 2024. The company achieved net revenues of 2.12 billion yuan ($290.3 million), representing a 29.3% increase year-over-year. Most significantly, Viomi transformed its bottom line from a net loss of 84.7 million yuan in 2023 to a net profit of 63.4 million yuan ($8.7 million) in 2024. On a non-GAAP basis, the company posted an adjusted profit of 79.9 million yuan, compared to a loss of 84.6 million yuan in the previous year. This impressive performance was primarily driven by the home water systems segment, which saw revenues surge by 39.0% to 1.5 billion yuan. The kitchen appliances division also performed strongly, with revenues increasing by 45.2% to 342.9 million yuan. Only the consumables segment experienced a decline, with revenues falling 14.5% to 277.7 million yuan.

Strategic Reorganization Drives Performance

The positive trajectory continued in the second half of 2024, with Viomi recording a substantial 42.8% increase in net revenue to 1.28 billion yuan ($175.7 million). The company generated a net profit of 56.8 million yuan during this period, contrasting sharply with the 32.0 million yuan loss reported in the second half of 2023. Management attributes this successful turnaround to the strategic reorganization completed in August 2024, which involved divesting most of its IoT@Home product portfolio, except for range hoods, gas stoves, and water heating systems. This strategic shift has enabled Viomi to focus intensively on its core competencies in home water solutions, where it now offers a comprehensive product range from point-of-use RO systems to whole-house softening and purification solutions, increasingly featuring AI-powered water treatment technologies.

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Source StockWorld