Event: On August 29, 2024, Anker Innovation released its 2024 semi-annual report. 2024H1 achieved revenue of 9.648 billion yuan (+36.55%), net profit attributable to mother of 0.872 billion yuan (+6.36%), after deducting non-attributable net profit of 0.766 billion yuan (+40.53%). Looking at a single quarter, 2024Q2's revenue was 5.271 billion yuan (+42.43%), net profit due to mother 0.561 billion yuan (+9.19%), after deducting non-attributable net profit of 0.45 billion yuan (+49.89%). Non-recurring profit and loss changed greatly, mainly due to investing in the listing of Nanxin Technology in the same period in 2023, contributing more fair value variable income to form a high base. Therefore, deducting non-net profit can better reflect the company's actual operating situation in the current period.

The revenue scale of major categories such as 2024H1 charging and energy storage increased rapidly, with high increases in Europe, the US, the Middle East, and China. 1) By category, the revenue of 2024H1's charging and energy storage/intelligent innovation/smart video products was 4.975/2.36/2.309 billion yuan respectively, +42.81/35.33/ 30.84% year-on-year, respectively. The revenue scale of all major categories increased rapidly. 2) By region, 2024H1's overseas/domestic revenue was 9.271/0.377 billion yuan respectively, +36.44/ 39.30% year-on-year, respectively. Overseas North America/Europe/Middle East surged, with revenue of 4.627/2.053/0.568 billion yuan respectively, +40.68/44.60/ 39.17% year over year. Product innovation and localized operations in mature markets drove revenue growth against the trend, providing impetus for refined market operations. 3) By channel, 2024H1's online/offline revenue was 6.73/2.918 billion yuan respectively, +38.48/ 32.30% year-on-year, respectively, and the revenue scale increased rapidly.

2024Q2 gross margin and net profit margin increased slightly, and profitability was steady and improving. 1) Gross profit margin:

2024Q2's gross profit margin was 45.23% (+0.56pct), achieving steady growth, or product structure optimization, intelligent innovation, and intelligent video brought upward contributions, and the domestic market improved markedly, compounded by supply chain reform; 2) Net interest rate: 2024Q2's net profit margin was 10.98% (-3.25pct), after deducting a steady increase in non-net interest rate (8.54%, +0.43pct). 3) Expense side: The 2024Q2 company's sales/management/R&D/finance expenses ratio was 21.56/4.01/8.12/ -0.25%, compared with +0.06/+1.14/ -0.51pct, respectively. The increase in management expenses ratio or the increase in share payment fees was due to an increase in share payment fees.

The product matrix continues to be rich, and the results of multi-channel construction are remarkable. 1) Product side: Active promotion of the three core categories. New balcony energy storage and Anker MagGo ultra-fast magnetic wireless charging series in the 2024H1 charging and energy storage category, the smart innovation category launched the eufy X10 Pro Omni sweeper and eufy S1 Pro floor washing robot, and the smart video category launched new products such as Soundcore C30i earclip headphones, Soundcore SleepA20 sleeping headphones, and AnkerWork S600 conference speakers. Application scenario segmentation trends Obviously, the overall product strength continues to improve. 2) Channel side: Omni-channel operation optimization. 2024H1's revenue from third-party platforms other than Amazon was 0.763 billion yuan (+67.36%), and the revenue growth of the six major independent sites was impressive (0.925 billion yuan, +102.85%).

Investment advice: On the industry side, overseas demand is expected to continue to recover, the penetration rate of fast charging products is increasing, the rise of the “camping economy” is driving demand for outdoor electricity, global energy shortages and the role of household photovoltaics and energy storage devices under dual carbon targets, and cutting-edge technologies such as mobile internet, artificial intelligence and big data are leading the flourishing development of smart hardware. On the company side, high-quality new products drive structural optimization, and the multi-brand layout strengthens the market position, and the company's revenue performance is expected to continue to grow. We estimate that in 2024-2026, the company's net profit to mother will be 2.027/2.486/3.052 billion yuan, the corresponding EPS will be 3.81/4.68/5.74 yuan, and the current stock price corresponding PE will be 16.54/13.48/10.98 times. Maintain a “buy” rating.

Risk warning: Exchange rate fluctuations, changes in the global economic environment, changes in the consumer electronics industry, increased market competition, etc.