Roborock(SH:688169) Tianfeng Securities·2024-11-01 01:00Investment Rating - The report maintains a "Buy" rating for the company, with an expected relative return of over 20% within the next six months [5][14]. Core Insights - The company achieved a revenue of 7.007 billion yuan in the first three quarters of 2024, representing a year-on-year increase of 23.17%, while the net profit attributable to the parent company was 1.472 billion yuan, up 8.22% year-on-year [1]. - In Q3 2024, the company reported a revenue of 2.591 billion yuan, an increase of 11.91% year-on-year, but the net profit dropped by 43.4% to 351 million yuan [1]. - The company is experiencing a shift in product pricing strategy, with an increase in the proportion of cost-effective models leading to a decrease in average selling prices and gross margins [3][4]. Revenue Performance - Domestic sales showed strong performance, with online sales of the company's robotic vacuum cleaners increasing by 42% year-on-year in Q3 2024 [2]. - The overall revenue growth is expected to be supported by the upcoming Q4 promotions and government subsidies, which may further enhance domestic sales [2]. Profitability Metrics - The gross margin for the first three quarters of 2024 was 53.86%, a decrease of 0.48 percentage points year-on-year, while the net margin was 21.01%, down 2.9 percentage points [3]. - In Q3 2024, the gross margin was 53.95%, reflecting a year-on-year decline of 5.16 percentage points, and the net margin fell to 13.57%, down 13.26 percentage points [3]. Cost Structure - The company has increased its investment in brand marketing, with sales, management, R&D, and financial expense ratios rising in the first three quarters of 2024 compared to the previous year [4]. - The sales expense ratio increased by 6.85 percentage points year-on-year in Q3 2024, indicating a significant rise in marketing expenditures [4]. Financial Forecast - The company’s projected net profits for 2024-2026 are 2.182 billion yuan, 2.407 billion yuan, and 2.641 billion yuan, respectively, with a downward adjustment from previous estimates [4]. - The dynamic price-to-earnings ratios for 2024, 2025, and 2026 are projected to be 19.9x, 18.1x, and 16.5x, respectively [4].