Roborock(SH:688169) HTSC·2025-10-31 06:49Investment Rating - The report maintains a "Buy" rating for the company [7][5]. Core Insights - The company achieved a revenue of 4.163 billion RMB in Q3 2025, representing a year-over-year increase of 60.71% but a quarter-over-quarter decrease of 6.96%. The net profit attributable to the parent company was 360 million RMB, up 2.51% year-over-year but down 12.14% quarter-over-quarter [1][2]. - For the first three quarters of 2025, the company reported a total revenue of 12.066 billion RMB, a 72.22% increase year-over-year, while the net profit attributable to the parent company was 1.038 billion RMB, down 29.51% year-over-year [1][2]. - The company is accelerating its global expansion and enhancing its brand presence overseas, which is expected to lead to a recovery in net profit margins in the future [1][2]. Revenue Growth - In Q3 2025, the company's revenue growth was driven by the domestic vacuum cleaner market and ongoing brand development in overseas markets, leading to significant increases in product sales [2]. - The online GMV for the company's vacuum cleaner business in China increased by 70% year-over-year, while the washing machine business saw a staggering 1228% increase [2]. Profitability Metrics - The gross margin for Q3 2025 was 42.15%, down 11.80 percentage points year-over-year, primarily due to increased domestic price subsidies. The selling expense ratio decreased to 24.39%, down 1.79 percentage points year-over-year [3]. - The company's R&D expense ratio was maintained at a high level of 8.23% in Q3 2025, reflecting its commitment to innovation [3]. Inventory Management - As of the end of Q3 2025, the company's inventory reached 3.716 billion RMB, an increase of nearly 2 billion RMB year-over-year, primarily due to increased stocking in the U.S. to mitigate tariff risks and growth in European self-operated channels [4]. Profit Forecast and Valuation - The report adjusts the company's net profit forecasts for 2025-2027 to 1.682 billion RMB, 2.385 billion RMB, and 2.801 billion RMB, respectively, reflecting a downward adjustment of 15.19%, 0.94%, and 1.85% [5]. - The target price for the company is set at 230.25 RMB, based on a 25x PE ratio for 2026, indicating potential for profit growth in the coming year [5].