Event: The company released its 2024 three-quarter report. 24Q1-Q3 achieved revenue of 2.133 billion yuan, +35.02% year-on-year, realized net profit of 0.159 billion yuan, +357.06% year-on-year, and realized net profit without deduction of 0.098 billion yuan, or +177.54% year-on-year. On a quarterly basis, 24Q3 achieved revenue of 0.99 billion yuan, +50.41%/+76.76% year-on-month, realized net profit of 0.087 billion yuan, +888.90%/+97.52% year-on-month, and realized net profit of 0.057 billion yuan after deduction of non-return to mother, and +231.58%/+113.48% year-on-month. 24Q3's gross sales margin was 43.77%, +2.36/ -2.48pct; net sales margin was 8.74%, +10.41/+0.91pct. 24Q3 results exceeded expectations.

Continuing to deepen the global brand strategy, the US and Japanese markets performed well. The company continues to cultivate core markets in the US and Japan, and 24Q1-Q3's revenue in the US market and the Japanese market achieved year-on-year growth of 41.12% and 72.69%, respectively. In order to further strengthen global market penetration, the company is actively building a global channel network. Through the integration of the brand's official website, third-party e-commerce platforms, and offline retail channels, it has sold nearly 5 million units of products, leading the global sales volume. At present, the company has established 23 brand websites around the world, covering more than 50 countries and regions. The company's revenue in the first three quarters increased 61.81% year-on-year, achieving monthly sales exceeding 100 million yuan.

Significant breakthroughs have been made in the field of product innovation, reducing costs and increasing efficiency to drive a recovery in profitability. 24Q1-Q3, the company's solar generator outdoor power supply revenue increased by nearly 130% year-on-year, accounting for nearly 50%.

The company also launched full-scene home green power solutions, including the world's first DIY small home green power system and XBC photovoltaic tile home green power system. The company effectively controlled the cost rate through measures such as optimizing the labor cost structure, improving the accuracy of advertising and promotion, and the reuse rate of marketing materials. The company will strengthen capacity building for digital operation and refined channel operation to enhance profitability and market competitiveness.

Investment advice: Considering the company's new product layout and new channel expansion, we expect the company to achieve net profit of 0.229/0.374/0.497 billion yuan in 2024-2026, +231.75%/+63.31%/+32.89% year-on-year, corresponding EPS of 1.83/3.00/3.98 yuan, maintaining a “buy” rating.

Risk warning: downstream demand falls short of expectations; channel expansion falls short of expectations; industry competition intensifies.