The semi-annual report showed high performance growth. According to the company's interim report, in 2024, the company's main revenue was 1.842 billion yuan, up 27.22% year on year; net profit to mother was 0.387 billion yuan, up 104.51% year on year; after deducting non-net profit of 0.289 billion yuan, up 52.59% year on year. Among them, in the second quarter of 2024, the company's main revenue in a single quarter was 0.979 billion yuan, up 31.98% year on year; net profit returned to mother in a single quarter was 0.262 billion yuan, up 123.67% year on year; and deducted non-net profit of 0.164 billion yuan in a single quarter, up 41.22% year on year. The company performed well in terms of revenue and profit, mainly due to the company's strong leading edge and grasp of strategic development opportunities for overseas new energy charging networks.

“Traditional diagnosis+digital intelligence new energy” and the forward-looking layout of the global supply chain optimize the business structure. The optimization of the company's business layout structure is reflected in the market distribution and business model. The traditional digital maintenance business continues to recover steadily, and market demand continues to pick up, achieving revenue of 1.438 billion yuan, an increase of 18.04% over the previous year.

Meanwhile, the new energy charging pile business ushered in explosive growth. The digital energy business achieved revenue of 0.378 billion yuan, an increase of 92.37% over the previous year, and became the company's new growth engine. The company's layout in the global market was effective, making the revenue structure more diversified. The main business revenue in the North American market was 0.955 billion yuan, up 30.93% year on year, and the main business revenue in Europe was 0.32 billion yuan, up 39.04% year on year.

Traditional businesses have recovered steadily, and the first development curve has grown steadily. In the traditional business field, the company launched a series of self-developed diagnostic testing products during the reporting period. Among them, TPMS and ADAS products have a first-mover advantage in the industry, continue to lead industry trends in model compatibility, update speed, usage efficiency, portability and integration, and broaden domestic and international markets. Comprehensive automotive diagnostic products achieved revenue of 0.608 billion yuan, up 1.78% year on year; TPMS series products achieved revenue of 0.329 billion yuan, up 33.83% year on year; ADAS intelligent testing and calibration products achieved revenue of 0.177 billion yuan, up 23.97% year on year; software upgrade services achieved revenue of 0.211 billion yuan, up 26.32% year on year.

Improve the digital energy business product matrix, and AI-supported software has become a profit engine. The company's newly launched Maxi Charger AC Pro is specially designed for commercial and residential use. It leads the market with a high power of 19.2kW (80A). It has intelligent features such as intelligent dynamic load balancing, one-click configuration communication networking, and AI-driven optimization. In terms of DC piles and supercharging piles, the company continues to promote the optimization and upgrading of various technology platforms such as integral/split, air cooling/liquid cooling, and continues to promote the design, testing and certification of full-scenario charging solutions such as next-generation ultra-fast integrated charging piles and megawatt charging piles (MCS).

Risk warning: international trade and business risks; demand for charging piles falls short of expectations; market competition intensifies.

Investment advice: Maintain an “better than the market” rating. Considering the rapid growth rate of the company's net profit in the first half of the year, we raised our profit. The estimated net profit for 2024-2026 is 0.522/0.662/0.831 billion yuan (the original forecast was 0.493/0.619/0.746 billion yuan for 24-26, respectively), corresponding to current PE 21/16/13 times, respectively. Considering that the company's charging pile business is expected to continue to grow at a high rate, it maintains a “superior to the market” rating.