Technological innovation and market expansion drive Beijing Roborock Technology (688169.SH) to soar in performance and lead industry growth.

With the flagship new products being released one after another by the leading companies in the clean appliance industry, market attention is once again focused on industry innovation and technological progress. Recently, Beijing Roborock Technology (688169.SH) launched the new products P10S Pro and P10S in cooperation with Siasun Robot & Automation, upgrading the popular P series. It is understood that the new products not only incorporate a "dual-arm" design and a self-maintenance dual spiral sweeping system, further improving corner cleaning, but also innovatively designed a mini base station that naturally fits into home design. By integrating the industry's most advanced technology into the cost-effective P series, Roborock not only enhances the competitiveness of its products but also positions its new products to quickly dominate the industry. According to valuation data from Debon Securities on key domestic home appliance companies, from the beginning of 2024 to February 8th, the stock price of Beijing Roborock Technology has increased by 14.8%, ranking among the top three in terms of stock price growth among key home appliance valuation companies by Debon Securities. In addition, sales data research on small home appliance companies by Debon Securities shows that the offline sales of Beijing Roborock Technology in December 2023 and the fourth quarter of 2023 have significantly increased, with a year-on-year growth of 300% and 409% respectively; while online sales during the same period also increased by 14% and 35% respectively. According to data from All View Cloud, the company's market share of sales revenue increased by 3 percentage points to 24% in 2023. In fact, since 2023, there has been a slowdown in the growth of the domestic Siasun Robot & Automation industry, but this is mainly due to the decline in sales of non-self-cleaning products by about 40% in 2023, which has slowed down the overall industry growth. However, self-cleaning products continue to show rapid growth. According to All View Cloud data, the growth rate of self-cleaning floor sweeping machine product sales was 75% and 20% in 2022 and 2023 respectively, accounting for 67% and 81% of the total industry volume. With a significantly improved cost-performance ratio and a continuously growing reputation, self-cleaning products continue to grow in volume. Beijing Roborock Technology is expected to continue to increase its market share with high-quality and cost-effective products through technology cost reduction, continuous product iteration, and new product launches. In the global market, Beijing Roborock Technology has also performed well in overseas markets. Taking the US market as an example, mirror data shows that the sales revenue of the floor sweeping machine industry in the US in January increased by 1.5% to $62.493 million, with sales volume decreasing by 5.6% to 41,000 units. Among them, Beijing Roborock Technology's sales revenue increased by 89.6% to $14.769 million, with sales volume growing significantly by 85.8% to 36,000 units, and its market share of sales revenue reached 23.6%, surpassing iRobot to become the market leader in the US. Open source securities believe that the US offline channels mainly focus on mid-to-low-end single-collector products, and Beijing Roborock Technology has entered nearly 200 stores in Target, with great expansion potential. Leveraging product innovation and channel breakthroughs, Beijing Roborock Technology is expected to continue to seize opportunities to increase the penetration rate of all-in-one floor sweeping machines overseas. With a dual focus on product capabilities and market penetration, Beijing Roborock Technology has shown strong growth in its performance amidst the dual benefits of domestic repair trends and overseas demand. According to the performance forecast announced by Beijing Roborock Technology at the end of January for the fiscal year 2023, the company expects its net profit to reach 2 to 2.2 billion yuan, with a year-on-year increase of 68.99% to 85.89%. The performance forecast also shows that the company's overseas income has achieved rapid growth. A review of financial report data over the years shows that since the second quarter of 2023, Beijing Roborock Technology has continuously set new records for quarterly net profit attributable to shareholders, and its net profit for the fiscal year 2023 has also reached the highest level since 2019. In response to this, HAITONG INT'L believes that floor sweeping machines have two excellent characteristics similar to white goods, namely handling long slopes and heavy snow, and a good competitive landscape. As a global leader in the industry, Beijing Roborock Technology will fully benefit from the industry's growth. HAITONG INT'L further analyzes that the overseas market is seeing both volume and price increase, and Chinese brands still have room for expansion, market share improvement, and structural upgrades. Leading Chinese companies will continue to lead in technological upgrades and iterative development, making their product competitive advantage increasingly apparent, and their global market share will continue to significantly increase. Additionally, with the continued expansion of Chinese brand channels, Beijing Roborock Technology still has significant room for market share growth. In addition to the substantial increase in sales volume, driven by Chinese brands, the industry's average product price has continued to rise due to the upgrade of product structure in recent years. It is worth noting that Debon Securities has given a positive outlook on the future three-year company value and potential investment return of Beijing Roborock Technology, with a 2-digit positive growth expectation for net profit attributable to shareholders in the next three years of 20.8 billion to 27.7 billion yuan, and based on the industry's growth and competitive advantage of Beijing Roborock Technology, they have given a target price for Beijing Roborock Technology in 2024 of 23E-The expected valuation for PE ratio with continuous positive values of 25E is corresponding to estimated PE ratios of 21 times, 18 times, and 15 times.With the continuous improvement of the product strength and market share of Chinese sweeping robot brands, domestic enterprises will usher in more opportunities in the expanding market space and favorable domestic policy environment, especially leading technology home appliance companies like Beijing Roborock Technology. Based on their innovation capabilities and strong market competitiveness, they will lead the industry in a new round of growth in 2024 with an "acceleration" posture.