Incident review

On October 19, 2024, the company announced a plan to increase its holdings. Telecom Investment, a wholly-owned subsidiary of China Telecom Group, the company's actual controller, plans to increase its holdings by 0.2-0.4 billion yuan.

Incident analysis

Since the IPO, management has increased its holdings several times, demonstrating confidence in long-term development. Since the company's IPO, management has increased its holdings several times, and has now increased its holdings by about 4.294 million yuan.

This announcement is the company's first plan to increase the company's holdings after the IPO, demonstrating the majority shareholders' confidence in the company's future development prospects and recognition of the company's value.

Category expansion: A new generation of sweepers was released in September, and the revenue growth rate of the 1H24 intelligent service robot reached 273.3%. On September 12, 24, the company held a 2024 fluorite cleaning robot new product launch conference to release the new generation RS20 Pro Uitra. The price of the water tank version/automatic discharge version was 3,499/3, 999 yuan, and the 1H24 intelligent service robot achieved revenue of 5,4.8 million yuan, an increase of 273.3% over the previous year. The cleaning robot line achieved 0 to 1 sales A breakthrough. Fast overseas: Launched at the global exhibition in October, which is expected to accelerate the introduction of new categories overseas. On October 14, the company appeared at the 44th GITEX GLOBAL exhibition at the Dubai World Trade Center to show all categories of its smart home products to global exhibitors. 1H24 achieved overseas revenue of 0.849 billion yuan, an increase of 29.9% over the previous year. We believe that this exhibition at GITEX GLOBAL will accelerate the company's introduction of new categories in overseas markets and further enhance the global brand awareness of “Fluorite”.

Basically stable: The world's leading consumer camera position is stable. According to IDC, 1H24 ranks first in the world in terms of consumer camera shipments. In Q2 alone, the top five global consumer camera manufacturers are Fluorite, Xiaomi, Orange, Pluton, and Amazon. The gross margin of 1H24's smart home cameras reached 39.41%, up 0.82pct from 23FY, and was basically stable over the previous year. We believe that the market position of the company's middle- and high-priced products is relatively stable.

Profit Forecasts, Valuations, and Ratings

We slightly adjusted the company's revenue for 24-26 to be 5.54/6.57/7.85 billion yuan, respectively, and net profit to mother of 0.64/0.78/1.03 billion yuan, respectively.

Risk warning

There is a risk that the slow domestic growth of SHC will slow down the revenue growth of cloud platforms; the risk that sales of cleaning robots will fall short of expectations; the risk that the commercial transformation of C-terminal cloud services on IoT cloud platforms falls short of expectations.