Event: The company released its 2024 quarterly report. In the first quarter of 2024, the company achieved operating income of 1,841 million yuan, a year-on-year increase of 58.69%; realized net profit of 399 million yuan, an increase of 95.23% over the previous year; realized net profit without deduction of 342 million yuan, an increase of 110.03% over the previous year.
The industry's prosperity has improved, and the company's product sales have continued to grow. Industry: According to Aowei Cloud Network, the 2024M1-M3 sales/sales volume growth rates of the entire sweeper industry were 38.27%/33.83%, respectively, and the 2024M3 sales/sales volume growth rate of a single 2024M3 was 61.61%/53.52%. The year-on-year growth rate was 61.61%/53.52%, which is a high level of prosperity. Company: According to Aowei Cloud Network, Shitou 2024M1-M3 online sales/sales volume grew by 29.88%/32%, respectively, and sales continued to grow; in March 2024, the online market share of P10 S Pro products exceeded 9.6%, ranking third in the industry and highly competitive.
The new product parameters were strong at the end of March 2024, and it is expected that it will remain highly competitive in the future. On March 29, 2024, the new G20S and V20 sweepers were launched at the Stone New Product Launch Conference. G20S: Water and sewage version/automatic water exchange version is priced at 5399/5999 yuan; equipped with Reactive AI obstacle avoidance 4.0 system, supports RGB camera+dual-wire laser obstacle detection; equipped with a dual-domain floor cleaning system, supports four-zone double shock floor cleaning; equipped with a robotic side brush. V20: The price of the water and sewer version/automatic water exchange version is 4799/5399 yuan; equipped with Stone's pioneering Stararray pilot system and has dual 3D ToF solid-state lidars; equipped with dual sweeping and towing robots to achieve extreme edge and corner cleaning.
Profitability continues to increase. Gross profit margin: 2024Q1 was +6.65pct to 56.49% year-on-year. We estimate that this is due to product structure optimization and the company's continued cost reduction. Rate side: 2024Q1 sales/management/R&D/finance rate year-on-year -0.18pct/-1.67pct/-0.79pct/+1.09pct. Net interest rate: 2024q1 net margin +4.05pct YoY to 21.66%.
Profit forecasting and investment advice. We expect the company to achieve net profit of 26.61/30.94/35.25 billion yuan in 2024-2026, an increase of 29.7%/16.3%/13.9% year-on-year, and maintain the “increase” investment rating.
Risk warning: the risk of macroeconomic fluctuations, fluctuating raw material prices, and increased market competition.