The company released the new vacuum cleaner V20 and G20S, maintaining the “buy” rating. On March 29, the company released two new mid-range and high-end flagship sweepers, V20 and G20S. Among them, the V20 sold for 4799 yuan/5399 yuan (water and sewage version), and the G20S sold for 5399 yuan/5999 yuan (water and sewage version). Compared with similar products, the product strength continued to maintain leadership. The company has strong innovation capabilities and good pre-sales of new products. We maintain our profit forecast. We expect net profit of 24.1/28.5/3.38 billion yuan to the mother for 2024-2026, corresponding EPS of 18.3/21.7/25.7 yuan, and the current stock price corresponding to PE is 17.9/15.1/12.7 times, maintaining a “buy” rating.
The V20 uses the world's first dual-light solid-state lidar solution, eliminating the raised LDS. Traditional sweepers with thinner airframes mostly rely on rotating LDS lidar for navigation, but the raised LDS makes the fuselage very tall. The V20 uses the 3D-ToF dual-light solid-state lidar navigation obstacle avoidance program “Star Airlines”, which was jointly developed by Stone and PMD, Infineon, and Optics. Compared with similar products, the V20 has: (1) Eliminated the raised radar, and the height of the fuselage was reduced to 82mm (sweepers of the same type are generally above 100mm), making it easy to enter and exit low spaces such as the bottom of the bed and sofa. (2) Compared with linear laser rotation navigation, the surface array of light emitted by the 3D-ToF dual light source scheme has the advantages of long range, high accuracy, fast response speed, etc., and can accurately restore maps and achieve accurate obstacle avoidance. (3) Use dual light sources to see far and close at the same time to effectively solve the “multi-mirror interference” problem of 3D-ToF used in sweepers.
The G20S is positioned as a high-end all-purpose flagship. The cleaning capacity and convenience level have further upgraded the G20S is the domestic version of the overseas S8 MaxV Ultra, upgraded the self-cleaning ability of the mop and base stations, and positioned as an all-purpose flagship to better satisfy carpet families. Compared with similar products, (1) Using four-zone double shock floor wiping technology, the high-frequency vibration frequency reaches 4,000 times/minute. Combined with the industry's first flexible robotic arm and corner fixed small disc mop, the cleaning ability is further advanced. (2) Active scrubbing and scraping skills have been added to the base station, and the height of the automatic water loading and unloading version is only 30cm. (3) Spiral double rubber brush with hair suction roll cutting, double rubber brush and hair cutting. (4) Support the Matter protocol to further link smart homes. (5) Lift the mop to a height of 20cm.
The new products are expected to fill the middle and high-end price bands. We are optimistic that domestic sales revenue will continue to rise in 2024Q2. The overall product matrix fits the K-type consumer distribution in 2023. The results in terms of price in exchange for volume are remarkable. The market share of 2024M2 stone sales reached 21.2%, an increase of 2.6 pcts over the same period, which is the same as Covos's share during the same period. Some pre-sale channels of the P10S Pro products released by 2024M2 were out of stock and performed well, driving the Shitou brand's online channel sales market share to be close to 40% during the delivery week. For 7 consecutive days, JD ranked first in the Tmall bestseller list, and product strength was continuously verified. This new product is a series launch of the high-end flagship series. It is expected to better meet high-end consumer demand and effectively supplement the product matrix. We believe they are expected to jointly form strong support for domestic market performance in 2024Q2.
Risk warning: new product sales fall short of expectations; raw material price risk; demand falls short of expectations under high overseas inflation.