Roborock(SH:688169) Haitong Securities·2024-04-29 09:32Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [1] Core Views - The company reported a revenue of 1.841 billion yuan for Q1 2024, representing a year-on-year growth of 58.69%, and a net profit of 399 million yuan, up 95.23% year-on-year [4] - The company's gross margin improved by 6.64 percentage points to 56.49% in Q1 2024, with net profit margin increasing by 4.05 percentage points to 21.66%, indicating stronger profitability, particularly in overseas markets [4] - The report anticipates robust growth for the company's robotic vacuum cleaners, driven by overseas channel expansion and increasing domestic market demand, leading to a potential valuation recovery [4] - Earnings per share (EPS) forecasts for 2024-2026 are 19.15 yuan, 22.64 yuan, and 26.62 yuan respectively, with a projected price-to-earnings (PE) ratio of 25-30 times for 2024, suggesting a reasonable value range of 478.75-574.5 yuan [4] Financial Summary - The company’s revenue is projected to grow from 8.654 billion yuan in 2023 to 15.590 billion yuan in 2026, with year-on-year growth rates of 30.5%, 26.8%, 20.4%, and 18.0% respectively [5][7] - Net profit is expected to increase from 2.051 billion yuan in 2023 to 3.500 billion yuan in 2026, with growth rates of 73.3%, 22.8%, 18.2%, and 17.6% [5][7] - The gross margin is forecasted to improve from 55.1% in 2023 to 57.3% in 2026 [5][7] Valuation Metrics - The company’s price-to-earnings (P/E) ratio is projected to decrease from 24.50 in 2023 to 14.36 in 2026, indicating an improving valuation as earnings grow [7] - The price-to-book (P/B) ratio is expected to decline from 4.42 in 2023 to 2.84 in 2026, reflecting a more attractive valuation over time [7] Market Performance - The company has outperformed the market with an absolute increase of 11.0% over 1 month, 16.8% over 2 months, and 27.4% over 3 months [2]