The company released the 24Q1 financial report. The company achieved revenue of 1,841 billion yuan in 24Q1, a year-on-year increase of 58.69%, and net profit to mother of 399 million yuan, an increase of 95.23% over the previous year.

Profitability was further enhanced. The company's 24Q1 gross margin increased 6.64pp to 56.49% year-on-year, the sales/management/ R&D expenses ratio changed to -0.18pp/ -1.66pp/ -0.79pp to 20.75%/2.77%/10.57%, respectively, and the net profit margin to mother increased 4.05pp to 21.66% year over year. We judged that the company had stronger overseas profitability, and the increase in overseas revenue share led to a further increase in the company's profitability.

Profit forecasting and investment advice. We are optimistic about the long-term growth space of sweeping robots, and we are optimistic about the steady growth brought about by the increase in Stone's global market share in the context of overseas channel expansion and domestic industry momentum. The industry's growth logic has been repaired, and the company's revenue and net profit due to the continued high increase in valuation are expected. We expect the company's market value to rise in 2024-2026 at 19.15 yuan, 22.64 yuan, and 26.62 yuan respectively. Based on the growth of the industry and the company's competitive advantage, the corresponding reasonable value range is 478.75-574.5 yuan, maintaining a “superior to the market” rating.

Risk warning. Competition in the industry has intensified, and overseas demand has fluctuated.