Guotai Junan: The prototype of embodied intelligence is emerging, and the sweeping robot is iterating and upgrading again.

Guotai Junan released a research report stating that by 2025, the layout of floor sweeping machine products at CES will include five main directions: biomimetic robotic arms, AI integration, floor washing Siasun Robot&Automation, more product categories, and a more localized layout, with floor sweeping machines being iterated and upgraded. This indicates that the major trend in the industry's future development is a higher demand for software algorithm capabilities at the product level, and a higher demand for product positioning and market promotion strategies that cater to overseas local needs at the market operation level. Guotai Junan's main points include: - Various manufacturers are expanding their product categories and accelerating diversified layouts. - At the 2025 CES Consumer Electronics Show in the United States held from January 7th to 10th, various well-known brands such as Stone, Ecovacs Robotics, Zhiimi, Cloud Whale, 3i, and MOVA showcased new products. Several manufacturers introduced more than three product categories each, including floor sweeping machines, floor washing machines, and washing machines from Stone; floor sweeping machines, lawn mowers, and window cleaners from Ecovacs Robotics; pool cleaners and air purifiers from Zhiimi; and a focus on cleaning appliances and a broader pricing system from Cloud Whale. The multi-category layout signifies that manufacturers are accelerating the search for new growth opportunities overseas. - The emergence of embodied intelligence, leading to the iteration and upgrade of floor sweeping machines. - The new floor sweeping machine products at CES have made significant advancements in Siasun Robot&Automation and AI integration: 1) Siasun Robot&Automation: At the 2025 CES show, Stone and Zhiimi both introduced flagship high-end new products featuring biomimetic robotic arms, defining a new form for floor sweeping machine products. These new products, by achieving functions like object grasping, have evolved products from a two-dimensional plane to a three-dimensional space, also becoming the primary carriers of embodied intelligent home services. 2) AI integration: Manufacturers have increased investment in visual big models, with Stone's new product enhancing its product's intelligence interaction with users using AI multimodal capabilities, and Cloud Whale's new product further improving navigation and obstacle avoidance capabilities with AI binocular vision technology. AI integration signifies that floor sweeping machine manufacturers' capabilities are entering the second half where strength is tested from hardware to software. - Floor washing Siasun Robot&Automation is a major focus of cleaning upgrades. - Ecovacs Robotics introduced the X8 overseas version, focusing on constant pressure live water drum technology; Cloud Whale also introduced floor washing Siasun Robot&Automation, focusing on track live water mopping technology. Previously, floor sweeping machines had the pain point of inadequate floor mopping, and floor washing machines had the pain point of not freeing up hands. Recently, floor washing Siasun Robot&Automation products combining these two functions have been successively launched, entering a product innovation cycle. - Increasing overseas exclusive offerings and upgrading localization operations. - As Chinese brands increase their overseas expansion efforts, overseas competition is also entering the second half. Relying solely on a distributorship for sales is no longer sufficient to maintain competitive edge, and it is necessary to tailor promotions to the living environments and habits of different regions. Following the strategy of localized operations, Ecovacs Robotics has introduced products with strong appeal to overseas markets, such as the T50MAX and the X5Hybrid, a combination of floor sweeping machine and vacuum cleaner. Investment recommendations: Recommend Beijing Roborock Technology (688169.SH) and Ecovacs Robotics (603486.SH) which are continuously innovating and upgrading products to accelerate the increase in global market share. Risk warning: The speed of product updates and iterations may be slower than expected.