GLONGHUI July 28丨Huaxin Securities Research Report on the 27th pointed out that in the first half of the year, Tongbao (301339.SZ) achieved a high level of growth in revenue and net profit, partly because the company increased ETC distribution and promotion efforts through offline outlets, cooperation channels and online platforms, optimized the ETC product system. Distribution volume led to an increase in sales revenue. At the same time, expressway traffic increased significantly, leading to a significant increase in electronic toll service fee revenue. As the only ETC distribution service agency in Jiangsu Province, on the one hand, the company relies on monopoly advantages to continuously consolidate its market position in the Jiangsu region, and at the same time seizes the market through online distribution. On the other hand, we are actively cooperating with 14 OEMs including SAIC Changan and Fuyao Glass to lay out market opportunities for ETC front-end installations in advance, while at the same time expanding markets outside the province in line with the opportunities of Internet distribution to increase market share. The bank predicts that the company's net profit for 2023-2025 will be 208, 2.66, and 330 million yuan respectively, and EPS will be 0.51, 0.65, and 0.81 yuan respectively. The current stock price corresponds to PE of 44, 35, and 28 times, respectively, maintaining the company's “buy” investment rating.