Event: The company released its 2024 semi-annual report. 24H1 achieved revenue of 1.142 billion yuan, +24.02% year over year, realized net profit of 0.073 billion yuan, +242.70% year over year, and realized net profit of 0.04 billion yuan without return to mother, +148.87% year over year. On a quarterly basis, 24Q2 achieved revenue of 0.56 billion yuan, +18.46%/-3.79% year over month, realized net profit of 0.044 billion yuan, +305.13%/+51.17% year over month, and realized net profit of 0.027 billion yuan without return to mother, +173.53%/+102.53% year over month. 24Q2's gross sales margin was 46.25%, +9.64/-0.27pct; net sales margin was 7.83%, +12.35/+2.85pct. The company plans to distribute cash dividends of 2.83 yuan (tax included) to all shareholders for every 10 shares, for a total cash dividend of 35.08 million yuan (tax included).

Continued deepening of the Trinity Channel has achieved remarkable results in reducing costs and increasing efficiency. In terms of its global layout, the company continues to deepen its global brand strategy. 24H1's revenue in the US market was +38.17% YoY, and the Japanese market revenue was +51.13% YoY. The company is actively strengthening its global channel layout. Through the integration of independent websites, third-party e-commerce platforms, and offline retail channels, the company has sold more than 4 million units, leading the global sales volume. The company has now established 21 independent official websites around the world, and its business covers more than 50 countries and regions around the world. In terms of offline channels, the company has successfully entered more than 10,000 world-renowned retail channels such as Costco, Lawe's, Walmart, and Home Depot, further increasing its brand influence and market share. As raw material prices declined, inventory structure optimization, and measures to improve product quality and cost reduction continued to advance, 24H1's gross profit margin was 46.39%, +7.31 pct.

Efficient R&D promotes continuous innovation in the company's products, and new home green power systems are launched in Europe. 24H1 launched flagship new products such as the new generation of safe and fast charging outdoor power supply 1000Pro 2. At the same time, the company launched two highly innovative new products, the world's first DIY small home green power system and the world's leading Smile PV tile home green power system, which are now on the market in Europe.

Investment advice: Considering the company's new product layout and new channel expansion, we expect the company to achieve net profit of 0.213/0.322/0.456 billion yuan in 2024-2026, +222.46%/+51.17%/+41.78% year-on-year, corresponding EPS of 1.70/2.58/3.65 yuan, maintaining a “buy” rating.

Risk warning: downstream demand falls short of expectations; channel expansion falls short of expectations; industry competition intensifies.