Strong increase in performance, optimistic about the elasticity of overseas growth throughout the year
Stone Technology released its quarterly report, achieving revenue of 1,841 million yuan (yoy +58.69%) and net profit of 399 million yuan (yoy +95.23%) in 24Q1. Q1 started well, and revenue elasticity increased driven by new products. We raised the company's 2024-2026 EPS to 18.89, 22.24, and 25.47 yuan respectively (previous values: 18.15 yuan, 20.29 yuan, and 22.45 yuan). Comparable to the 2024 Wind consensus, the average PE value is 18 times. The company has obvious product advantages and flexible performance growth. It gives the company 25 times in 24 years, a target price of 472.25 yuan (previous value 381.15 yuan), and maintains a “buy” rating.
Revenue continues to grow at a high rate, and the new product effect is worth looking forward to
24Q1's revenue was +58.69% year-on-year, continuing the high growth trend in the second half of '23. In February and March, the company released various new products of the P10S series, V20 series, and G20S series in China. At the same time, the new overseas S8 maxv series will also be fully sold in mid-late April. With the launch of new products, the company's revenue growth is flexible. According to monitoring by Aowei Cloud Network, the online GMV of the new Yueshi P10S series is close to 100 million yuan, and Shitou's 24Q1 online retail sales were +30% year-on-year, driven by new products in March.
Net interest rates remain high, and inventory increases appropriately to prepare for the second quarter
The 24Q1 company's gross margin was 56.5%, +6.65pct; the sales expenses ratio was 20.75%, a year-on-year decrease of 0.18pct; and the gross sales margin was 35.74%, +6.82pct year-on-year. This is mainly due to product structure optimization. Since 23Q2, the company's gross sales gap has maintained a high water level of more than 30%. In terms of inventory, the inventory amount on the 24Q1 account was 876 million yuan, an increase of nearly 30% over the previous year. Based on the impressive sales of new domestic products in March, this is mainly due to the company's appropriate increase in inventory.
The best-selling generation, the reserve generation, the company strengthens the management of the entire product life cycle
In addition to the February P10S series selling well, the company is also trying to promote a next-generation product platform. On March 29, the company launched the self-cleaning robot V20. The V20 is equipped with a new-generation laser navigation obstacle avoidance system, which supports ultra-accurate mapping and obstacle recognition. We believe that as one of the underlying key technologies for sweeping robots, upgrading the performance of laser navigation and obstacle avoidance systems will bring continuous innovation at the application level and continuously optimize the product experience. The company's product development advantages and leading position have been consolidated and strengthened.
Risk warning: increased market competition; risk of high inflation overseas; risk of new products falling short of expectations.