Roborock(688169) 财通证券·2024-05-07 14:24Investment Rating - The report initiates coverage with an "Overweight" rating for the company [1] Core Views - The company is a global leader in AI-powered robotic vacuum cleaners, with a strong competitive position in the global market [2] - The company's core business focuses on robotic vacuum cleaners, accounting for 94% of its revenue in 2023, with both domestic and international sales driving growth [10] - The company has achieved leading profitability in the industry, with a gross margin of 55.1% and a net margin of 23.7% in 2023 [2] - The company's revenue is expected to grow from RMB 11.065 billion in 2024 to RMB 17.973 billion in 2026, with net profit increasing from RMB 2.552 billion to RMB 4.285 billion over the same period [1] Company Overview - Founded in July 2014, the company went public on the STAR Market in February 2020 and has since become a global leader in robotic vacuum cleaners [7] - The company's products are positioned as high-end in overseas markets, with four products ranking in the top 15 best-selling robotic vacuum cleaners on Amazon US [2] - The company has successfully transitioned from producing products for Xiaomi to building its own brand, with overseas revenue accounting for 49% of total revenue in 2023 [10] Market Position and Growth - The company's global market share in robotic vacuum cleaners reached the top position in the first three quarters of 2023, according to Euromonitor data [7] - The global market for robotic vacuum cleaners is expected to grow to USD 9.97 billion by 2028, with overseas markets contributing significantly to this growth [41] - The company's overseas revenue has grown at a compound annual growth rate (CAGR) of 64% from 2019 to 2023, driven by strong product competitiveness and brand recognition [12] Technological Advantages - The company's robotic vacuum cleaners are essentially mini autonomous driving systems, combining hardware and software to achieve efficient cleaning [23] - The company has strong R&D capabilities, with a focus on core algorithms, LiDAR, and cleaning modules, which have helped establish its high-end brand image [31] - The company's products feature advanced technologies such as LDS (Laser Distance Sensor) and RGB cameras, enabling precise environmental perception and obstacle avoidance [36] Competitive Landscape - The company has benefited from the decline of iRobot, the former market leader, which has faced financial difficulties and declining market share [47] - The company has been gaining market share in the US, Europe, and Japan, with its products ranking highly in terms of sales and customer reviews on platforms like Amazon [45][46] Domestic Market Strategy - In the domestic market, the company has adopted a "price-for-volume" strategy, successfully increasing sales by 41% in 2023 despite a 1.2% decrease in average selling prices [2] - The company has leveraged its technological advantages to reduce costs while maintaining user experience, leading to the creation of popular products like the P10 [2] Financial Performance - The company's revenue grew from RMB 3.05 billion in 2018 to RMB 8.65 billion in 2023, with a CAGR of 23% [16] - Net profit increased from RMB 310 million in 2018 to RMB 2.05 billion in 2023, with a CAGR of 46% [16] - The company's gross margin and net margin have consistently outperformed industry peers, reaching 55.1% and 23.7% respectively in 2023 [17]