2024 H1:1) Achieved revenue of 1.834 billion yuan, +12.47% YoY; realized net profit attributable to mother 0.096 billion yuan, +6.07% YoY; realized net profit of 0.075 billion yuan without return to mother, +11.27% YoY. 2) Gross profit margin 36.26%, +0.07pct year on year; net profit margin 5.23%, year-on-year -0.32pct; net profit margin without return to mother 4.11%, -0.04pct year on year. 3) The cost rate for the period was 29.73%, -0.53 pct year on year, and the sales/management/R&D/finance expense ratios were 9.51%, 6.17%, 12.83%, and 1.22%, respectively, with year-on-year changes of +0.05, -0.06, -1.86, and +1.34pct, respectively.

2024Q2 in a single quarter: 1) Achieved revenue of 1.091 billion yuan, +46% year over month; realized net profit of 0.117 billion yuan, +206.08% year on year, +650.41% month on month; realized net profit without return to mother 0.123 billion yuan, +239.34% year on year and +359.85% month on month. 2) Q2 gross profit margin of 38.71% in a single quarter, +0.82pct year on year, +6.04pct month on month; net profit margin 10.74%, +5.62pct year on year, +13.6pct month on month; net profit margin without return to mother 11.23%, +6.4pct year on year, +17.58pct month-on-month.

By business: 1) Consumer electronics business: 24H1 achieved revenue of 1.344 billion yuan, +2.28% of total revenue; 2) New energy business: revenue of 0.437 billion yuan, +65.39%, accounting for 24% of total revenue; 3) Core components: revenue of 0.129 billion yuan, or +14.95% YoY, of which external sales revenue was 37 million yuan.

1) Fruit Chain core equipment manufacturer, diverse product matrix: Bozhongjing works as a domestic 3C automation equipment leader. Since 2010, it has established cooperation with Apple to complete horizontal and vertical business expansion from mobile phones to 3C, from complete machines to components, and has a diverse product matrix. Customer resources are excellent. In recent years, Apple and its designated EMS vendors have accounted for more than 70% of the company's revenue. 2) Disruptive innovation in flexible modular production lines, and orders are expected to continue to grow: As one of the few equipment manufacturers in the industry that actually has the ability to cover the entire FATP segment, the company has delivered more than 40 flexible modular production lines in the assembly and inspection process of mobile phone panels and backpanels. The 24H1 flexible modular production line is mainly used in the assembly and packaging of mobile phone frames. At present, this flexible automated production line has been successfully mass-produced. The flexible modular production line is expected to cover more process links in mobile phone production and gradually expand into other terminal products in the future, contributing to strong growth momentum. 3) XR business: The next-generation MR production equipment for major customers is currently undergoing preliminary program verification, and it is expected that prototyping will begin at the end of '24. At the same time, the company has also received requests from many XR product customers, and the business development is stable.

Profit forecast: Considering that the company's H1 consumer electronics business performance increased only slightly and did not meet the forecast growth rate, the company's net profit for 24-26 is estimated to be 0.456, 0.664, and 0.852 billion yuan (the previous value of the 24-25 forecast is 0.564 and 0.715 billion yuan), corresponding to PE 20.6, 14.1, and 11.0 times.

Risk warning: Risk of fruit chain dependency, downstream application industry is more concentrated risk, market development risk.