Roborock(SH:688169) HTSC·2024-10-31 07:55Investment Rating - The report maintains a "Buy" rating for the company [1][5][25] Core Views - The company reported a revenue of 2.591 billion RMB in Q3 2024, a year-on-year increase of 11.91%, while the net profit attributable to shareholders was 351 million RMB, a decrease of 43.40% year-on-year. For the first three quarters, the company achieved a revenue of 7.007 billion RMB, up 23.17% year-on-year, and a net profit of 1.472 billion RMB, an increase of 8.22% year-on-year. Despite a significant decline in profit in Q3 due to increased marketing expenses for domestic and international markets, the globalization expansion logic remains valid, driving further revenue growth and releasing profit elasticity [1][2][3]. Summary by Sections Revenue Growth - In Q3 2024, the company's revenue grew by 11.91%, primarily driven by new autumn products in the domestic market and continued globalization efforts in overseas markets. Online retail sales in September increased by 68.67% year-on-year, outperforming the industry average of 23.71%. The company's market share in online retail reached 27.31%, up 7.28 percentage points year-on-year, leading the industry [2][4]. Profitability and Expenses - The gross margin for Q3 2024 was 53.95%, down 4.72 percentage points year-on-year. The selling expense ratio increased to 26.18%, up 7.29 percentage points year-on-year, leading to a decline in profitability. This decline is attributed to a high base effect and increased marketing expenses for new product promotions. The net profit margin for Q3 was 13.57%, down 13.26 percentage points year-on-year [3][5]. Market Strategy and Future Outlook - Short-term prospects look positive due to domestic promotional events and subsidies for smart home appliances, with online retail sales of floor cleaning machines increasing by 1945% during the first week of the Double Eleven shopping festival. The company is also seeing growth in overseas markets through partnerships with retailers like Target and Best Buy, which are expected to provide new revenue growth momentum [4][5]. Profit Forecast and Valuation - The profit forecasts for 2024-2026 have been adjusted to 2.203 billion RMB, 2.411 billion RMB, and 2.711 billion RMB, respectively. The target price for 2025 is set at 326.25 RMB, based on a 25x PE ratio, reflecting the company's strong product advantages and steady globalization expansion [5][6].