The expansion of 24H1 stores and users drove steady revenue growth, and profitability continued to improve. The company released its 24-year semi-annual report. 24H1's revenue growth was 7.1 billion, +9.3% year-on-year. The revenue growth was mainly due to the continuous expansion of stores and users. 24H1 added 402 new factory stores, achieving 6311 factory stores nationwide, with 0.126 billion registered users, +20.7% year-on-year, and 21.4 million trading users. Million, +15.8% year over year; achieved adjusted net profit of 0.358 billion, +67.3% year over year, gross profit margin 25.9%, and +1.7 pct year over year. The improvement in gross margin was mainly due to the continuous increase in proprietary automatic control products.

The pattern is clear and the company's operations continue to improve steadily, and the penetration rate of new energy customers is accelerating. Judging from the after-sales supply-side pattern, traditional dealer supply is expected to shrink rapidly: in recent years, with the accelerated spread of electric intelligent technology, the market share of traditional joint ventures continues to be weak and the corresponding dealer business conditions are poor. In the future, the supply side of the automotive aftermarket is expected to shrink rapidly, and judging from the consumer attributes of dealers' after-sales users, consumer demand will shift more to IAM leaders such as Tourover; in the new energy business sector, the company's newly signed upstream battery manufacturers cover 16 cities 73 seats There are 0.046 million offline power plants. The average number of monthly charging users in the first half of the year exceeded 0.02 million, the number of new energy payments reached 1.85 million, the penetration rate of new energy users reached 8.4%, and the number of new energy users reached number one.

Investment rating: We expect the company's revenue for 24-26 to be 14.6/16/17.9 billion yuan, respectively, with year-on-year growth rates of +7%/+10%/+12%; net profit of 0.72/1.07/1.37 billion yuan, with year-on-year growth rates of -89%/+49%/+28%, corresponding PE of 18.5/12.4/9.7x. I am optimistic about the company's performance growth stability under the Matthew effect as a stable leader in the industry. The performance side is expected to fully benefit from third-party pattern optimization, drive resonance on the valuation side, and maintain a “buy” rating.

Risk warning: Internet companies' development of online and offline integrated platforms has led to increased competition in the industry. The expansion of business such as car maintenance may affect the increase in profitability. The company's stores in second-tier cities and below are not expanding as fast as expected, which may affect revenue growth. The public data used in the research report may have the risk of untimely data updates and the risk of deviations in industry size estimates.