Non-net profit after deducting 2024H1 increased 40% year over year, and the main business increased steadily. 24H1's revenue was 7.53 billion yuan, +15.2% YoY, net profit of 0.31 billion yuan YoY, +12%, net profit 0.34 billion yuan, +39.9% YoY; in a single quarter, 24Q2's revenue was 4.07 billion yuan, +25.8% YoY, +17.9%, net profit to mother 0.16 billion yuan, +35.4% YoY, +1.4% YoY, net profit 0.17 billion yuan YoY + 44.6%, +3.9% month-on-month. Overall, the increase in the company's performance was due to an increase in sales of its core product, automotive low-voltage lead-acid batteries (24H1's low-voltage lead-acid battery sales +17.1% year-on-year, with lead-acid NEV auxiliary battery sales +40% year-on-year). 24H1's domestic OEM sales volume was +14% year over year, of which passenger car equipment was +27% year over year, and the company's domestic replacement market sales volume was +11% year over year. The market share continued to increase steadily, continuing to consolidate its leading position in the country.

Expense control is stable, and profitability has increased year-on-year. 24Q2 Camel shares sales/management/R&D/finance expense rates were 4.4%/2.7%/0.0%, respectively, -0.7/-0.3/0.0/+0.3pct, and -0.8/-0.4/-0.3/-0.6pct, respectively. Overall, the cost control capacity is stable; 24Q2 Camel shares gross profit margin 14.5%, +0.5pct year on month, and -2.8pct month-on-month, net interest rate to mother 3.9%, +0.3pct year on month, and other factors (accounting for accounts receivable) Under the influence of (loss of bad debts+fluctuation in investment income), the company's profitability remains steady and solid.

The export business accelerated, and the company's overseas market sales increased 79% year-on-year in the first half of the year. ① Export support: The 24H1 camel received 7 overseas support targets, including SAIC (Thailand), Changan (Thailand), Chery (Indonesia), Sany (Indonesia), BMW (US), Honda (US), Proton Malaysia, etc.; ② Export channels:

24H1 reached cooperation with 38 customers through online marketing. The number of customers was +72%, and the cumulative turnover was +271%; ③ Export replacement: actively developing new customers and empty markets, and the company developed 33 new customers in the first half of the year; the production capacity level progressed steadily. As of 24H1, the domestic lead-acid battery production capacity was about 35 millionKvah/year, foreign lead-acid battery production capacity was about 5 millionkVah/year, and waste lead-acid battery recycling capacity was 0.86 million tons/year.

Undervalued segmented track leaders, channel upgrades and business development open up room for growth. Camel Co., Ltd.'s future growth space mainly lies in: 1) channel upgrading, the lead-acid battery aftermarket and overseas market are far larger than the domestic front-end market; 2) business development. The company actively explores the lithium battery business, continues to advance energy storage battery research and development, and has completed the R&D standardization of the entire power lithium battery recycling process.

Risk warning: Fluctuating raw material prices, changes in the international and economic environment, demand in the automotive industry is under pressure.

Investment advice: Optimistic about the steady growth of the company's business and maintaining a “superior to the market” rating. I am optimistic about the stable volume of the main business of Camel Co., Ltd., opening up room for growth. Considering the resource investment brought about by the company's business development, the company's profit forecast was slightly lowered. The net profit forecast for 24/25/26 is expected to be 0.74/0.96/1.17 billion yuan (originally 0.8/1.04/1.22 billion yuan), and the corresponding EPS is 0.63/0.82/1.00 (originally 0.68/0.89/1.04 yuan), corresponding to PE of 11/9/7 times, respectively, maintained “Better than the market” rating.