The company released its 2024 mid-year report:

24H1:4.4 billion (+31%) of revenue, 1.12 billion (+52%), net of 0.86 billion (+30%) 24Q2: income 2.6 billion (+16%), 0.72 billion (+35%), deducted of non-0.52 billion (+4%), deducted from mother was at the center of the previous forecast, which is basically in line with expectations.

The difference between deduction and return is due to the adjustment of the tax refund scale. Excluding the impact of tax refund, the actual deduction growth rate is about 20%.

Q2 Revenue Splitting: Channel Expansion as Core Momentum

Overall, there are 37 domestic and overseas markets. Looking at the growth rate, China's revenue is expected to increase by single digits. North America's growth rate is over 50%, Europe is growing by double digits, and the Asia-Pacific region is growing.

Overseas: It is expected that the average price increase brought about by base station product upgrades will slow down temporarily, and the current core growth momentum will shift to channel expansion in various regions. The US is benefiting from continued offline store entry, and the growth rate is in line with expectations; Europe and the Asia-Pacific region need to pay more attention to channel development momentum.

Domestic: Referring to Aowei's caliber, the company's current market share has reached the highest domestic market share, and the logic of increasing its share has been effectively implemented.

In the future, we need to pay more attention to changes in domestic sales and the potential boost brought about by some provinces and cities including sweepers in trade-in subsidies.

Q2 Profitability: Remaining at a high level

Q2 The gross profit margin for the single quarter was 51.9% (+0.2pct), and the net profit margin was 28.0% (+3.9pct). After deducting the impact of tax rebates, the net interest rate was 22% (about the same as the previous month), and the real profitability remained stable.

Subsequent companies are expected to maintain a steady strategy in terms of profit: ① they will not blindly reduce product prices, ② they will simply expand the scale through expenses.

Investment advice: buy ratings

Considering that the company's profitability shows good stability, the profit forecast is estimated to be 2.5, 2.8, and 3.2 billion yuan (prior adjusted values of 2.5, 2.8, 3.3 billion), corresponding to valuations of 17, 15, and 13x. Continue to be optimistic about the company's scarce value as a leading household appliance brand overseas, and maintain its purchase rating.

Risk warning: Overseas demand falls short of expectations, domestic sales boom falls short of expectations, competition intensifies