Event: The company released its 2024 semi-annual report. The company achieved total operating income of 0.343 billion yuan in 2024H1, or -44.42% year-on-year; realized net profit of 0.018 billion yuan, or -86.12% year-on-year.

Among them, 2024Q2's total revenue for a single quarter was 0.216 billion yuan, or -44.39% YoY; net profit to mother was 0.013 billion yuan, or -84.82% YoY.

Revenue is under pressure due to industry demand. By product: The company's 2024H1 integrated stove/other products achieved revenue of 0.303 billion yuan/0.04 billion yuan respectively, or -44.95%/-40.07% year-on-year, mainly affected by fluctuations in industry orders and insufficient market demand.

Profitability declined, and marketing was reduced. Gross profit margin: The gross margin of the 2024Q2 company was -9.84pct year-on-year to 42.96%. Rate side: 2024Q2 sales/management/R&D/finance rates were 20.02%/9.31%/6.40%/0.36%, year-on-year change-

1.36pct/5.39pct/1.81pct/1.24pct. The change in the sales rate is mainly due to a reduction in the company's marketing expenses, and the change in the financial rate is mainly due to an increase in interest expenses on convertible bonds.

Net interest rate: The company's 2024Q2 net interest rate changed year-on-year - 16.15pct to 6.06%.

Continue to promote product iteration and improve channel efficiency. The integrated stove market is under overall pressure and consumption growth has clearly slowed. The company actively resists market risks and pressures, continues to develop and produce high-end, intelligent, integrated, green and unmanned kitchen appliances, and built a diversified product matrix; the company continues to cultivate distribution channels, expand e-commerce channels, broaden home improvement and KA channels, enter sinking channel outlets, and take more measures to vigorously improve channel efficiency.

Profit forecasting and investment advice. Considering the company's performance in the first half of 2024 and the overall environment of the integrated stove industry, we expect the company to achieve net profit of 0.068/0.077/0.083 billion yuan in 2024-2026, an increase of -61.9%/13.3%/7.8% year-on-year, and maintain an “increase” investment rating.

Risk warning: raw material prices fluctuate, real estate market fluctuation, and market competition intensified.