Roborock(SH:688169) Caixin Securities·2024-11-13 06:32Investment Rating - The investment rating for the company is "Buy" [1][11]. Core Views - The company achieved a revenue of 70.1 billion yuan in the first three quarters of 2024, representing a year-on-year increase of 23.2%. The net profit attributable to shareholders was 14.7 billion yuan, up 8.2% year-on-year. However, in Q3 2024, the revenue was 25.9 billion yuan, showing an 11.9% increase year-on-year, while the net profit dropped by 43.4% to 3.5 billion yuan [5][6]. - The company is focusing on expanding its self-operated channels in overseas markets, which has led to increased upfront costs and adjustments in channel structure, impacting Q3 profits. The gross margin and net margin for Q3 2024 were 53.9% and 13.6%, respectively, down 5.2 and 13.3 percentage points year-on-year, but still at a safe level [6][7]. - The domestic market is expected to see significant improvement in Q4 due to promotional events and government subsidies. The company has expanded its product range with new models to cater to a broader customer base, which is anticipated to boost domestic sales [7]. Financial Summary - The company forecasts revenues of 108.5 billion yuan, 131.3 billion yuan, and 154.8 billion yuan for 2024, 2025, and 2026, respectively. The net profit attributable to shareholders is projected to be 21.3 billion yuan, 25.2 billion yuan, and 30.0 billion yuan for the same years. The earnings per share (EPS) are expected to be 11.5 yuan, 13.7 yuan, and 16.2 yuan, with corresponding price-to-earnings (PE) ratios of 19.1, 16.1, and 13.6 [7][9].