Roborock(SH:688169) Guotai Junan Securities·2024-03-31 16:00Investment Rating - The investment rating for the company is "Buy" with a target price of 424.27 CNY, up from the previous target of 387.23 CNY [1][14]. Core Views - The company has demonstrated outstanding performance in 2023, achieving rapid growth both domestically and internationally, with a significant increase in sales volume and price for its vacuum cleaners, and a steady expansion of new product categories [1][14]. Summary by Sections 1. Event - In 2023, the company achieved a revenue of 86.54 billion CNY, a year-on-year increase of 30.55%, and a net profit attributable to shareholders of 20.51 billion CNY, up 73.32% [6][14]. 2. Revenue Growth - Domestic revenue reached 44.1 billion CNY, up 41%, while overseas revenue was 42.3 billion CNY, up 21%. The sales ratio was approximately 30% domestic and 70% overseas [7][8]. - The company launched the P10 series products in Q2, which significantly boosted domestic sales in H2, leading to a market share increase from 21% in 2022 to 24% in 2023 [7][8]. 3. Profitability - The gross margin improved to 55.13%, an increase of 5.87 percentage points year-on-year, with a net profit margin of 23.7%, up 5.85 percentage points [10][14]. - The company successfully optimized costs through software algorithm improvements, resulting in higher margins across all sales channels [10]. 4. Assets and Cash Flow - The company reported a net cash flow from operating activities of 21.86 billion CNY, a year-on-year increase of 95.09%, indicating strong cash generation capabilities [11][12]. 5. Dividend Policy - The company proposed a cash dividend of 4.68 CNY per share, totaling 6.15 billion CNY, which represents 29.96% of the net profit attributable to shareholders [13][14]. 6. Investment Recommendations - The company is expected to maintain strong earnings growth, with projected EPS of 18.45, 21.09, and 23.97 CNY for 2024, 2025, and 2026 respectively, reflecting growth rates of +18%, +14%, and +14% [14][15].