Incident: On August 26, 2024, Stone Technology launched pre-sale of the P20Pro self-cleaning sweeper robot. It innovates product features in chassis lifting and hair anti-entanglement. The water tank version is priced at 3999 yuan, and the smart water discharge version costs 4,599 yuan.

The chassis was upgraded, and the obstacle crossing height reached 4 cm, which was greatly increased. The company innovates chassis technology to achieve various lifting states based on the free combination of the rear wheel and the front wheel. The height of crossing the obstacle was raised from the previous generation machine P10sPro and 2cm, which is common in the industry, to 4cm. It supports crossing conventional doorstones and slides, passing through falling ground, etc., and the ability to cross the obstacle has been greatly improved. According to the “2023 White Paper on the Development of China's Clean Appliance Industry” published by Aowei Cloud Network, consumers currently pay the second highest level of attention to the obstacle crossing ability of sweepers. We believe that increasing the height of barrier crossing is an innovative feature that consumers can clearly perceive, meets the actual needs of consumers, and is expected to drive P series products to continue the hot sales trend.

Innovative anti-entanglement design and increased machine suction power effectively enhance cleaning ability. ANTI-TAG DESIGN:

The P20Pro has redesigned the main brush and side brush. The main brush uses a dual brush design, the side brush uses a 2-prong arc scheme, and the universal wheel is equipped with an external brush to improve the ability of women's long hair and pet hair to absorb curls while avoiding tangling. Increased suction power: The maximum suction power of the machine was increased to 18,500 Pa, which is significantly higher than the P10Spro's 11,000 Pa. Supports cleaning of medium wool carpets: In the past, due to the long fleece of medium wool carpets, it was easy to be sucked in by the main brush, causing the machine to get trapped. Thanks to the increased ability of the chassis to lift, the P20Pro can clean carpets with up to 17mm of wool.

Launched RrMind GPT to improve AI empowerment effects. Voice interaction ability is an important dimension for evaluating the intelligence of sweeping robots. The P20Pro first launched RRMind GPT, which supports human-machine voice interaction functions such as complex fuzzy instructions, offline interaction, instant question-and-answer, user instructions, and after-sales answers to enhance the AI empowerment effect.

Investment advice: The company maintains its competitive advantage in the field of global sweeping robots through continuous product innovation capabilities and deep use of AI. We expect the company to achieve operating income of 10.746/12.976/15.662 billion yuan and net profit to mother of 2.499/2.979/3.559 billion yuan in 2024-2026. The corresponding PE was 16.42/13.77/11.53 times, respectively, maintaining the “gain” rating.

Risk warning: Domestic and foreign competition increases risk, European and American market tariff risk, RMB exchange rate fluctuation risk, innovation failure risk, etc.