Core views

24H1 achieved revenue of 9.648 billion yuan, +36.6% year-on-year. Achieved net profit of 0.872 billion yuan to mother, +6.36% YoY. Single 24Q2 revenue was 5.271 billion yuan, +42.4% YoY. The return was 0.561 billion yuan, +9.2% year-on-year, with an accelerated increase from month to month. Diversify channels, promote online and offline layout, and continue to develop in potential markets. The company continued to develop and innovate. In the first half of the year, various product lines launched a variety of new products. 24H1 charging and energy storage products generated +42.8% year-on-year revenue, +35.3% in the intelligent innovation category, and +30.8% in the smart video category. The implementation of equity incentives is expected to continue to stimulate and enhance development momentum.

occurrences

The company released its 2024 semi-annual report, and 24H1 achieved revenue of 9.648 billion yuan, +36.6% year-on-year.

Achieved net profit of 0.872 billion yuan to mother, +6.36% year over year.

Brief review

24Q2 growth rate increased, channel diversification, gross margin increased

The company's 24H1 net profit without return to mother was 0.766 billion yuan, +40.5% year-on-year. Operating cash flow was 0.841 billion yuan, +37.9% YoY; single 24Q2 revenue was 5.271 billion yuan, +42.4% YoY. 0.561 billion yuan to mother, +9.2% YoY. Net profit without return to mother was 0.45 billion yuan, +49.9% year over year; 24H1 gross profit margin was 45.18%, +2.0pct year over year. The sales expense ratio was 21.92%, +0.6pct year over year. The management fee rate was 4.14%, +1.1 pct compared to the previous year. The cost rate for the period was 34.22%, +0.4pct year on year; 24Q2 gross profit margin was 45.23%, +0.6pct year on year. The sales expense ratio was 21.56%, +0.1pct. The management fee rate was 4.01%, +1.1 pct compared to the previous year. The cost rate for the period was 33.44%, +0.2pct year on year; sales expenses were affected by the increase in promotion and platform fees. The ratio of inventory balance to total assets was +2.56 pct at the end of the previous year, which is an increase in active stock preparation due to an increase in business volume;

Looking at regions and channels, 24H1 North America was 4.627 billion yuan, accounting for 47.95%, +1.4pct year-on-year. European revenue accounted for 21.27%, +1.2pct. Japan accounted for 13.40% of revenue, -1.7 pct year on year; by channel, online accounted for 69.75%, +1.0pct year on year, gross profit margin 48.60%, +1.3 pct year on year. Amazon accounted for 52.26% of the company's total revenue, -3.6 pct year over year. Other tripartite platforms accounted for 7.91%, +1.5pct year over year. Independent stations accounted for 9.59%, +3.1 pct year over year.

Innovation and iteration enhance brand effectiveness and bargaining power

24H1 charging energy storage products were 4.975 billion yuan, +42.8% year over year, accounting for 51.56%, +2.3 pct year on year, gross profit margin 42.98%, and -0.4 pct year on year. The intelligent innovation category was 2.36 billion yuan, +35.3% year over year, accounting for 24.46%, -0.2 pct year on year, gross profit margin 48.30%, and +3.3 pct. The smart video category was 2.309 billion yuan, +30.8% year over year, accounting for 23.93% year on year, -1.0 pct year on year, gross profit margin 46.62%, and +4.9pct year on year; the company actively promoted the launch of new products and charging energy storage products: including the launch of the Anker MagGo ultra-fast magnetic wireless charging series with Qi 2.0 certification in January. In February, Anker SOLIX launched the first Anker SollXC800Plus outdoor power supply with three built-in camping light modes. In April, the Anker SOLIXX1 household energy storage system went on sale in North America. In May, Anker SOLIX Solarbank 2nd Generation Pro and Plus were released in Germany, etc.; the eufy 4G LTE Cam S330 was launched in the field of intelligent innovation: smart security. In the smart cleaning field, eufy X10 Pro Omn was launched in February; smart video products: Soundcore C30i ear-clip headphones launched in March, AnkerWork focused on the smart office sector and launched the AnkerWork S600 in March; the company continues to explore new platform business and development opportunities, such as continuously developing and cooperating with e-commerce platforms such as JD, Tmall, AliExpress, eBay, and Douyin. The company is rapidly developing offline channels in various markets, mainly through cooperation with global retail stores, large regional retail stores, independent 3C stores and professional channel sellers, etc., to form separate specialized marketing teams and channel management teams. It has already settled in Walmart, Best Buy, Target, Market Openers, etc. in North America, as well as 7-11 convenience stores in Japan. Offline channels are also continuously broadening and deepening in countries and regions such as Europe, Australia, Southeast Asia, South America, etc.

At the end of June, the company launched the 2024 Restricted Stock Incentive Plan. The number of restricted shares to be granted under the plan is 5.2524 million shares, accounting for about 0.99% of the company's total share capital at the time of announcement. If 50% of the first vesting period corresponds to the 2024 year-on-year revenue growth rate of not less than 10% or net profit after deducting non-return to mother of not less than 10%, the corresponding condition is that 2024 revenue is not less than 19.258 billion yuan or net profit after deducting non-return to mother is not less than 1.478 billion yuan. The second vesting period corresponds to a revenue increase of no less than 20% in 2025 based on 2023, or a net profit increase of not less than 20% based on 2023, corresponding to 2025 revenue of not less than 21.009 billion yuan or net profit after deducting non-attributable income of not less than 1.612 billion yuan; the 2024 semi-annual dividend plan is to distribute a cash dividend of 6 yuan for every 10 shares to all shareholders. It is expected that a total of 0.319 billion yuan will be distributed, accounting for about 36.6% of 24H1 net profit to mother.

Investment advice: Net profit due to mother is estimated to be 1.862 billion yuan, 2.209 billion yuan, and 2.574 billion yuan from 2024 to 2026. Current stock prices correspond to PE of 17X, 14X, and 12X, respectively, maintaining an “incremental” rating.