According to the financial news app Zhongtong Finance, GF Securities released a research report stating that the volume and price of floor cleaning robots have risen concurrently, while the market for floor scrubbing robots has developed with a price-for-volume strategy. Sales of mainstream brand floor cleaning robots are getting closer, and competition is becoming increasingly fierce. There has been less innovative breakthrough products, and industry average prices have seen some rebounding. All-in-one floor cleaning robots continue to hold the mainstream position, while the share of single-machine products further shrinks. Tineco still maintains its leading position, while the competitive landscape of mid-tier brands has changed. In addition, the barrier to entry is low, and after the intensification of competition, average industry prices have decreased significantly. The team believes that with the release of new products and a dual-brand approach, Stone's market share at home and abroad is expected to continue to rise. After filling the gap prices offered by the previous model, it is predicted that the performance of Ecovacs Robotics will gradually recover.

Clean appliance industry H1 2024 summary: (1) Floor cleaning robots: Volume and price have risen simultaneously, and Tineco and Stone still maintain their leading positions. As of June 23, 2024, sales volume and revenue of floor cleaning robots rose by 25% and 31% YoY, respectively. According to AVC Cloud data, online and offline sales volumes of floor cleaning robots have respectively reached 1.57 million and 0.055 million units since the beginning of the year, with YoY growth rates of 25% and 62% respectively. The online and offline average unit prices in the industry are showing an upward trend, with YoY growth rates of 3.8% and 8.5%, respectively, and the trend of simultaneous price and volume growth is apparent. In terms of market share, Tineco and Stone maintain their leading positions, with online sales revenue market shares of 25.2% and 24.9%, respectively, but with a decrease YoY of 12% and 1.1%, respectively. In terms of brand performance, Stone's online sales revenue and sales volume growth rates were the same as those of the overall market, while Ecovacs Robotics' sales revenue and sales volume both decreased. ZUUM was the brand with the highest growth rates, with its online sales revenue and sales volume growth rates reaching +102% and +92%, respectively. Ecovacs Robotics' best-selling models such as the T30PRO and Stone's P10S PRO and other products all fall within the price range of ¥3500 - ¥4000. (2) Floor scrubbing robots: The industry competition is fierce, and a price-to-volume trend is apparent. As of June 23, 2024, sales volume and revenue of floor scrubbing robots rose by 39% and 13% YoY, respectively. According to AVC Cloud data, online and offline sales volumes of floor scrubbing robots have respectively reached 1.689 million and 0.09 million units since the beginning of the year, with YoY growth rates of 39% and 27% respectively. The online and offline average unit prices in the industry have decreased, with YoY declines of 19% and 9%, respectively, following a trend of price-for-volume. Tineco maintains its leading position, and ZUUM has increased its market share. According to AVC Cloud data, Tineco's online sales revenue market share and sales volume market share since the beginning of the year are 43.8% and 41.1%, respectively, with YoY decreases of 4.3% and 0.9%, respectively; and ZUUM's online sales revenue market share and sales volume market share since the beginning of the year are 20.8% and 18.0%, respectively, with YoY increases of 4.9% and 4.0%, respectively. In terms of brand performance, Tineco's sales revenue growth rate has slowed down, while ZUUM's growth rate has been quite impressive. In terms of price segments, the overall trend is a decline in prices, with the share of products costing less than ¥2000 increasing significantly from 28% in 2023 to 53% currently, while high-end product shares have decreased significantly. The Tineco's Fowan 2.0 Pro LED-C, Fowan STRETCH series, and the ZUUM H20PRO are the top-selling models online, with Tineco's Fowan 2.0 Pro LED-C accounting for the highest online sales volume, accumulating to 0.2 million units and priced at less than ¥2000, which confirms the significant rise in the share of this price segment.

Industry development trends: (1) Floor cleaning robots: First, mainstream brand market share approaches each other, competition is increasingly fierce. Second, breakthrough products have decreased, industry average price has rebounded slightly. Third, all-in-one products firmly hold the mainstream position, while single-machine products further shrink their share. (2) Floor scrubbing robots: First, Tineco still maintains its leading position, while the competitive landscape of mid-tier brands has changed. Second, the barrier to entry is low, and after the intensification of competition, average industry prices have decreased significantly. Third, single-machine products remain in the mainstream position while the share of base station models has decreased.

Investment suggestions: With the release of new products and a dual-brand approach, Stone's market share at home and abroad is expected to continue to rise. After filling the gap prices offered by the previous model, it is predicted that the performance of Ecovacs Robotics will gradually recover. Based on this, GF Securities recommends paying attention to leading clean appliance companies: Stone Technology and Ecovacs Robotics.

Risk warning: Competition in the clean appliances industry is intensifying, and the penetration rate of floor cleaning and scrubbing robots is lower than expected. The exchange rates have fluctuated greatly.