Roborock(SH:688169) EBSCN·2024-05-06 12:02Investment Rating - The report maintains a "Buy" rating for Stone Technology (688169 SH) [2] Core Views - Stone Technology achieved significant growth in Q1 2024 with operating revenue of 1 8 billion yuan YoY+59% and net profit attributable to shareholders of 400 million yuan YoY+95% [2] - Overseas sales continued to grow rapidly driven by product structure upgrades and channel expansion with overseas revenue growth estimated to be higher than domestic growth [2] - Domestic online sales increased by 27% in both value and volume while offline sales surged by 289% in value and 252% in volume [2] - The company launched new products such as the P10S series and flagship models V20 and G20S to strengthen its product lineup in both domestic and international markets [2] - Gross margin improved to 56 5% in Q1 2024 up 6 6 percentage points YoY due to overseas channel structure optimization and cost reductions [2] - Net profit margin increased to 21 7% up 4 1 percentage points YoY reflecting effective cost control and operational efficiency [2] Financial Performance and Projections - The report forecasts revenue growth of 27 16% 19 33% and 17 82% for 2024 2025 and 2026 respectively [3] - Net profit attributable to shareholders is projected to grow by 22 56% 18 28% and 17 59% for the same periods [3] - EPS is expected to increase from 19 12 yuan in 2024 to 26 60 yuan in 2026 [3] - ROE is forecasted to remain stable at around 18% from 2024 to 2026 [3] - The company's PE ratio is projected to decline from 22x in 2024 to 16x in 2026 indicating potential undervaluation [3] Operational Highlights - Stone Technology's cash position remains strong with cash and cash equivalents totaling 5 8 billion yuan accounting for 40% of total assets [2] - Operating cash flow improved significantly with a 70% YoY increase to 200 million yuan in Q1 2024 [2] - The company's receivables and payables increased by 25% and 74% respectively reflecting robust business activity [2] Product and Market Strategy - The P10 series continues to drive sales growth with the new P10S series expected to contribute more significantly from Q2 2024 [2] - The company is expanding its presence in mid-to-high-end price segments both domestically and internationally through new product launches [2] - Stone Technology's strong R&D capabilities and rapid product iteration support its competitive advantage and long-term profitability [2]