Key points of investment:

The company's net profit increased dramatically, and the digital energy business expanded rapidly. In the first half of 2024, the company achieved revenue of about 1.842 billion yuan, a year-on-year increase of 27.22%; among them, digital maintenance business revenue was 1.438 billion yuan (0.608 billion yuan for comprehensive automotive diagnostic products, up 1.78% year on year; TPMS series products were 0.329 billion yuan, up 33.83% year on year; ADAS intelligent testing and calibration products were 0.177 billion yuan, up 23.97% year on year; software upgrade service 0.211 (billion yuan, up 26.32% year over year.) , up 18.04% year on year; digital energy business revenue was 0.378 billion yuan, up 92.37% year on year. Looking at the regional market, in the first half of '24, the North American market achieved revenue of about 0.955 billion yuan, an increase of 30.93% year on year; the European market achieved revenue of about 0.32 billion yuan, up 39.04% year on year; and revenue from China and other markets was about 0.54 billion yuan, up 18.87% year on year.

In the first half of 2024, the company's consolidated gross margin was 56.28%, an increase of 2 percentage points over the same period last year.

Among them, the gross margin of the digital maintenance business was 60.57%, and the gross margin of the digital energy business was 38.86%.

We believe that the gross margin of the company's digital maintenance business is relatively stable, and there is still room for improvement in the gross margin of the digital energy business. As the scale of the digital energy business continues to be released, its gross margin is expected to gradually increase, which will further enhance the overall gross profit margin of the company.

All three of the company's expense rates declined in the first half of 2024. The sales expense ratio was 13.63% (15.41% in the same period last year), the management expense ratio was 7.10% (7.69% in the same period last year), and the R&D expense ratio was 16.43% (17.10% in the same period last year).

The company's main business revenue has been growing steadily. In particular, the digital energy business revenue has increased dramatically, and the company's expenses have been reasonably controlled, driving the company's net profit to increase dramatically. In the first half of 2024, the company achieved net profit of about 0.387 billion yuan, an increase of 104.51% year on year; deducted non-net profit of about 0.289 billion yuan, an increase of 52.59% year on year.

The company focuses on the comprehensive upgrading of products and solutions to build a digital energy technology moat. In the first half of 2024, the company continued to develop its digital energy business while stabilizing the basic market of its digital maintenance business.

In terms of charging equipment, the company focused on the comprehensive upgrade of products and solutions, launched MaxiCharger AC Pro (19.2kW (80A)), the latest domestic/commercial integrated AC pile product, completed prototype tests for next-generation ultra-fast integrated charging piles, and continued to improve one-stop optical storage and charging energy management solutions compatible with a full range of products. In terms of charging software and solutions, upgrade the charging AI algorithm, charging operation management platform, and operation and maintenance cloud platform.

The company currently has core technologies such as power electronics, AI, cloud and big data, vehicle pile cloud compatibility, intelligent operation and maintenance, and EMS to ensure that the company forms an effective technical product moat in the field of digital energy.