Incident: The company released its 2024 semi-annual report. During the reporting period, it achieved revenue of 0.594 billion yuan, +4.91% year on year, net profit to mother of 0.055 billion yuan, +11.70% year on year, after deducting 0.053 billion yuan of non-net profit, +27.13% year on year, gross profit margin of 40.43%, year-on-year +2.47pct.

Performance exceeded expectations, and profitability continued to improve: 2024Q2 achieved revenue of 0.338 billion yuan, +25.46%/32.13% month-on-month, and realized net profit of 0.028 billion yuan, +51.90% /month-on-month +8.31%, after deducting non-net profit of 0.028 billion yuan, +93.54% y/month-on-month +11.34%, gross profit margin of 40.21%, year-on-year +0.62 pct/month-on-month. The company's 2024Q2 performance exceeded expectations. Non-net profit deducted from mother increased sharply year on year, and profitability continued to improve. We judge that the improvement in the business structure led to profit release.

Diversified businesses have growth opportunities: New energy: The company's series of products in the lithium battery field have been recognized by customers for laser quality, long-term processing stability, processing yield, etc.; during the reporting period, the company's self-developed perovskite die-cutting equipment continued to receive orders from customers for pilot testing machines and P1-P4 process section equipment for 100 megawatt mass production lines, while actively following the industry's GW mass production line equipment tenders. Optoelectronic detection: In the field of optoelectronic active inspection, cooperation with leading customers continues to expand, providing them with comprehensive solutions including VR/AR photoelectric detection, camera chip module inspection, and VCSEL chip module inspection. Passive components: At present, the company's products continue to receive customer orders for resistors and integrated inductors. At the same time, the testing and verification work of the capacitor test sorter is progressing rapidly during the year, actively broadening the space for future growth.

Investment advice: The company's performance has exceeded expectations, and the new layout of diversified businesses is expected to bring more room for growth in the future.

We expect the company's 2024-2026 net profit to be 0.148/0.215/0.258 billion yuan, EPS is 1.55/2.26/2.71 yuan, and the corresponding PE is 20.04/13.77/11.49 times, maintaining the “increase” rating.

Risk warning: the industrialization of new products falls short of expectations; the risk that demand for new energy sources falls short of expectations; the risk of falling consumer electronics demand; and the risk of fluctuations in raw material supply and prices.