Roborock(SH:688169)2025-11-24 01:46Investment Rating - The investment rating for Roborock is "Buy" with a target price of Rmb241.5, indicating an expected share price return of 47.8% and an expected total return of 48.2% [4][7]. Core Insights - Roborock's robot vacuum business experienced a GMV growth of over 30% YoY during the "11.11" shopping event in China, but the company anticipates a significant gap in sales growth for 4Q25E due to high competition and previous government subsidies [1][2]. - The management is optimistic about business momentum in Europe and APAC markets, despite facing challenges in the US market due to tariffs and inventory pressures [3][4]. - The company is focusing on dual-mopper robot vacuum products and has launched new models to meet consumer demand [2][3]. Summary by Sections Robot Vacuum Business - The GMV for the robot vacuum business grew over 30% YoY during "11.11" in China, but the management expects a decrease in subsidy contributions in 4Q25E [2]. - The net price of key products has been adjusted to Rmb3k+, which is higher QoQ, indicating a strategy to maintain pricing power [2]. Overseas Business - There has been stable growth in Europe and APAC markets, while the US market shows weak growth due to high tariffs and inventory issues [3]. - The blended ASP in direct sales channels overseas is approximately US$600, with a previously achieved OPM of around 15% in the US [3]. Other Business Segments - The wet-dry vacuum business ranks second in market share in China, but is expected to incur net losses in 4Q25 due to ongoing subsidies [4][6]. - The washing machine segment reported a net loss of Rmb40-50 million in 3Q25, with plans to reduce losses through lower selling expenses [6].