Roborock(SH:688169) Huachuang Securities·2024-03-28 16:00Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 400 CNY, compared to the current price of 342.57 CNY [1]. Core Insights - The company reported impressive financial performance in 2023, achieving a revenue of 8.65 billion CNY, a year-on-year increase of 30.6%, and a net profit of 2.05 billion CNY, up 73.3% [1]. - The fourth quarter alone saw a revenue of 2.97 billion CNY, reflecting a 32.6% year-on-year growth, and a net profit of 690 million CNY, which is a remarkable increase of 110.3% [1]. - The growth in revenue is attributed to strong sales in the sweeping robot category, which generated 8.09 billion CNY, a 27.4% increase year-on-year, driven by the launch of several popular new products and an increase in overseas market share [1]. - The company’s gross margin improved by 5.9 percentage points to 55.1%, supported by an optimized product mix and strong performance of high-end products in overseas markets [1]. Financial Performance Summary - The company’s main revenue for 2023 was 8,654 million CNY, with a projected growth rate of 30.5% for 2024, and net profit for 2023 was 2,051 million CNY, with a forecasted growth of 73.3% [2]. - Earnings per share (EPS) for 2023 was 15.60 CNY, with projections of 18.83 CNY for 2024 and 26.20 CNY for 2026, indicating a strong upward trend [2]. - The company’s price-to-earnings (P/E) ratio is expected to decrease from 22 in 2023 to 13 by 2026, suggesting increasing valuation attractiveness [2]. Future Outlook - The company is expected to continue its high-quality growth into 2024, driven by competitive new product launches and an expanding overseas market presence [1]. - The failure of Amazon's acquisition of iRobot is seen as a competitive opportunity for the company to gain market share in the overseas market [1]. - The company is also focusing on enhancing shareholder returns through increased dividends, indicating a commitment to shareholder value [1].