2024 semi-annual report: Revenue continued to increase, and government subsidies and expenses affected profit performance. The company released the 2024 semi-annual report. In the first half of 2024, the company achieved operating income of 0.459 billion yuan, +39% year-on-year; net profit to mother of 0.02 billion yuan (0.036 billion yuan net profit to mother in the first half of 2023), -44% year-on-year. Among them, of the non-recurring profit and loss in the first half of 2024, the government subsidy was 2.22 million yuan, a decrease of 13.57 million yuan compared with the same period in 2023. In the first half of 2024, the company achieved net profit of 0.0018 million yuan, or -19% year-on-year. 2024H1 Company's comprehensive gross profit margin was 29.1%, -2.8pct year on year; sales/management/ R&D/finance expense ratios were 6.5%/7.9%/11.1%/0.4%, respectively, -0.2/+0.6/+0.8/+0.1pct year-on-year, respectively. The increase on the cost side was mainly due to the wholly-owned subsidiary Shaanxi Tonghe New Plant being put into use, increased housing depreciation and office expenses, and continued increase in R&D investment. Due to a slight decline in gross margin and the possibility that the cost side may continue to affect profit performance, we lowered our profit forecast. We expect the company's net profit to be 0.115, 0.172, and 0.255 billion yuan (originally 0.175, 0.285, 0.443 billion yuan), EPS is 0.66, 0.99, and 1.46 yuan/share, corresponding to the current stock price PE of 20.6, 13.7, and 9.3 times, respectively. The company's charging module is expected to fully benefit from industry demand and maintain “purchases” ratings.
2024H1 charging module business revenue +55% year over year. Looking at the continuous high incremental business, 2024H1's charging module business achieved revenue of 0.294 billion yuan, +55% year over year, gross margin of 23%, -2.6 pcts year on year; power operation power business achieved revenue of 0.083 billion yuan, +12% year on year, gross margin of 37%, -3.0 pcts year on year; custom power supply revenue was 0.043 billion yuan, -7% year on year, gross margin of 52%, year on year + 12.4 pcts The company's charging module business continues to benefit from increased demand from the industry. The scale of revenue continues to grow rapidly, and gross margin has declined slightly. On the product side, the company launched a liquid-cooled charging module and released a new 40kW charging module in the Taihang series, and the company continued to invest in R&D resources to iterate the product to continuously improve product competitiveness in terms of product power density, efficiency, protection, stability, and noise. The company continues to explore overseas markets and participated in exhibitions in the United States, Germany, South Korea, Indonesia, Abu Dhabi, Munich, Russia and other places in the first half of 2024. The company's products have obtained CE certification and UL certification, and many products have entered the European and North American markets.
Risk warning: Competition in the charging pile industry has intensified, and the progress of going overseas falls short of expectations.
