Roborock(SH:688169) ZHESHANG SECURITIES·2024-11-08 08:15Investment Rating - The report maintains an "Accumulate" rating for Stone Technology [5] Core Views - The company's Q3 revenue increased by 11.9% year-on-year, reaching 2.59 billion yuan, while net profit attributable to shareholders decreased by 43.4% to 350 million yuan [1][2] - Domestic sales are expected to grow rapidly, supported by government subsidies, with online sales of robotic vacuum cleaners increasing by 42.8% year-on-year in Q3 [2] - The pressure on profit margins is attributed to product pricing strategies and changes in channel structures, with a gross profit margin decline of 12.0 percentage points [2] - The company is projected to achieve net profits of 2.17 billion, 2.42 billion, and 2.67 billion yuan for 2024, 2025, and 2026, respectively, with corresponding P/E ratios of 19X, 17X, and 15X [3] Summary by Sections Financial Performance - Q3 revenue was 2.59 billion yuan, up 11.9% year-on-year, while net profit was 350 million yuan, down 43.4% [1] - The gross profit margin decreased by 12.0 percentage points to 13.6% [2] Sales and Market Trends - Domestic sales are expected to benefit from government subsidies, with significant sales growth observed during the Double 11 shopping festival [2] - The company has launched new products overseas in anticipation of the fourth quarter sales surge [2] Profitability and Forecast - The report forecasts net profits of 2.17 billion yuan for 2024, reflecting a 5.6% year-on-year increase, and projects continued growth in subsequent years [3] - The expected P/E ratios for the next three years are 19X, 17X, and 15X, indicating a favorable valuation outlook [3]