Performance was in line with expectations, and changes in revenue structure led to a recovery in gross margin. 2024H1 achieved revenue of 1.071 billion yuan, YoY +1.33%; net profit to mother of 0.03 billion yuan, YoY +34.18%, comprehensive gross profit margin of 30.39%, YoY +1.45pct. In a single quarter, 2024Q2 achieved revenue of 0.531 billion, YoY -1.71%, QoQ -1.82%; net profit to mother of 0.009 billion yuan, YoY -76.48%, QoQ -54.26%; comprehensive gross profit margin of 33.26%, YoY+1.27pct, and QoQ+5.68pct.

Overall, the company's revenue fluctuations are mainly related to the production boom of domestic industrial enterprises. The company's performance is affected by the slowdown in digital investment from individual major customers, the slowdown in the pace of acceptance confirmation of some projects, and the overall slowdown in domestic industrial growth. At the same time, the company continues to optimize its customer structure, and its self-developed products are gradually being recognized, which is expected to drive the company's gross margin increase in the future.

Adhering to the product service transformation strategy, customer development has achieved remarkable results. In 2024, the company continued to increase its efforts to develop incremental markets for large and medium-sized enterprises, while increasing commercialization investment in intelligent manufacturing and new enterprise applications, and achieved remarkable results in customer development.

1) Pan-ERP field: The company continues to focus on serving the central state-owned enterprise market, successfully replaced some application modules of these mainstream foreign ERP systems through independent R&D platforms, and achieved large-scale system switching and launch this year. On the one hand, the company provides solutions based on mature ERP software such as SAP and ORACLE, covering the core and stable business management requirements of enterprise business to solve enterprise management efficiency problems; on the other hand, the company covers the business operation innovation needs of enterprises that require flexible adaptation and agile implementation in complex and rapidly changing business environments by providing mature digital application products, including digital applications in the supply chain, digital applications of business finance, digital marketing applications, etc., to help enterprises achieve digitalization of online business, digitization of operations, and intelligent decision-making Transformation goals.

2) In the field of energy manufacturing: The company's industrial Internet platform was selected for the Ministry of Industry and Information Technology's “cross-industry cross-sector” platform list. MBM's new products can also enable collaboration between supply chain planning and logistics, and integrate energy management and equipment asset management. At the same time, it has also cooperated with Huawei to jointly develop a next-generation SMOM joint solution based on Huawei IDMe. Through the full interconnection of people, machines, and goods, it promotes the formation of a new industrial manufacturing and service system, which has become an important path for the transformation and upgrading of the industrial economy.

Profit forecast: The company's revenue for 2024-2026 is estimated to be 2.611, 3.079, and 3.642 billion yuan, respectively, and net profit to mother of 0.282, 0.354, and 0.428 billion yuan, respectively, maintaining a “buy” rating.

Risk warning: downstream economic recovery falls short of expectations, market competition intensifies, performance forecasts fall short of expectations