Core Viewpoint - Stone Technology, the first listed company in the A-share market for floor cleaning robots, has announced plans to issue H-shares and list on the Hong Kong Stock Exchange, marking a new phase in its globalization strategy [2][8]. Financial Performance - In Q1 2025, Stone Technology achieved a revenue of 3.428 billion yuan, a year-on-year increase of 86.22%, marking the highest quarterly growth rate in nearly three years [3][7]. - The net profit attributable to shareholders reached 267 million yuan, while R&D investment amounted to 266 million yuan, up 36.9% year-on-year [3][7]. - For the full year of 2024, the company reported a revenue of 11.945 billion yuan, reflecting a growth of 38.03% compared to the previous year [3]. Market Position - According to IDC, Stone Technology's global market share for floor cleaning robots reached 16% in terms of sales volume and 22.3% in sales revenue in 2024, surpassing iRobot for the first time [3][9]. - The company achieved the top sales and revenue positions in several countries, including Denmark, Finland, Germany, South Korea, Norway, Sweden, and Turkey [3]. Product Innovation - In Q1 2025, Stone Technology launched the G30 Space exploration version, featuring a unique "mechanical arm + AI" design, allowing for advanced cleaning capabilities [5][6]. - The company also introduced the A30 Pro Steam floor washer, which can heat water to 150°C steam or 86°C hot water, and the Z1 Max laundry and drying set, which is the only product under 10,000 yuan to receive dual green certification from the International Woolmark Company [5][6]. R&D Investment - Stone Technology's R&D investment reached a record high of 971 million yuan in 2024, a year-on-year increase of 56.93%, accounting for 8.13% of total revenue [6][7]. - In Q1 2025, R&D expenses were 266 million yuan, representing 7.77% of total revenue [7]. Strategic Considerations for Hong Kong Listing - The decision to list in Hong Kong is strategic, aimed at expanding international business, enhancing product R&D, and improving operational funding [8][9]. - Analysts are optimistic about the company's future, anticipating a rebound in gross margins as new product categories gain scale [8]. International Business Growth - Overseas sales accounted for approximately 6.388 billion yuan in 2024, a year-on-year increase of 51.06%, representing 53.48% of total revenue [9]. - The company has expanded its presence in over 230 countries and regions, with more than 20 million households using its floor cleaning robots [9].

Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - The company reported a significant revenue increase of 86.22% year-on-year in Q1 2025, achieving a total revenue of 34.28 billion yuan. However, the net profit attributable to shareholders decreased by 32.92% to 2.67 billion yuan, and the net profit after deducting non-recurring items fell by 29.28% to 2.42 billion yuan [2][5]. Summary by Sections Financial Performance - In Q1 2025, the company achieved a revenue of 34.28 billion yuan, marking an 86.22% increase year-on-year. The net profit attributable to shareholders was 2.67 billion yuan, down 32.92% year-on-year, while the net profit after deducting non-recurring items was 2.42 billion yuan, a decrease of 29.28% year-on-year [2][5]. Market Position and Strategy - The company continues to adopt an aggressive strategy, leading to substantial revenue growth. The domestic sales of robotic vacuum cleaners showed a significant increase, with sales revenue, volume, and average price rising by 51.67%, 42.38%, and 6.53% year-on-year, respectively. The company has also increased its market share in both online and offline sales channels [11]. - The company launched innovative products such as the G30 Space exploration version robotic vacuum cleaner and the A30 Pro Steam washing machine, which have set new benchmarks in the high-end market [11]. Future Outlook - The company is expected to maintain strong growth in the coming years, with projected net profits of 22.32 billion yuan, 32.80 billion yuan, and 40.44 billion yuan for 2025, 2026, and 2027, respectively. The corresponding price-to-earnings ratios are estimated to be 16.02, 10.90, and 8.84 times [11].