Incident: The company released the 2024H1 performance report. 2024H1 achieved revenue of 0.304 billion yuan, +0.72% year over year; net profit to mother -0.011 billion yuan, which turned profit into loss year on year; net profit after deducting non-return to mother -0.027 billion yuan, or -51.09% year on year.

2024Q2 revenue increased month-on-month in a single quarter, and revenue in the home appliance sector grew rapidly. Looking at 2024Q2 in a single quarter, the company achieved revenue of 0.168 billion yuan, -0.66% year over year, +24.03% month on month; net profit to mother -0.011 billion yuan, which turned profit over the same period as a loss; after deducting non-return net profit of -0.019 billion yuan, the month-on-month loss margin increased. The boom in personal consumer electronics such as 2024H1, mobile phones, wearable devices, and smart homes is picking up, and export demand in the home appliance market continues to rise. The company uses product performance and customer resource advantages to continue to expand market share and product introduction, especially in the home appliance sector. Compared with the same period last year, the company achieved a revenue increase of 45.61% compared to the same period last year, and achieved a share breakthrough in the air conditioning sector, driving the company's overall revenue growth in 2024Q2.

Equity incentives coalesce the core team, and after the incentive fee is added, the company's net profit to the mother is positive. In order to enhance the cohesion and stability of the team and achieve the common growth and progress of the company and employees, the company continues to optimize and improve the relevant system policies for equity incentives, and continues to grant equity incentives to core key teams. 2024H1 generated a total of 18.5899 million yuan in share payments. After adding the shares to pay the fees, the company's net profit to mother was 0.008 billion yuan, and net profit after deducting non-return to mother was -0.009 billion yuan.

The product portfolio continues to expand, and important new products are rapidly added. On the DC-DC side, the company's DC-DC chips cover a full range of 4.5-40V and 0.6-6A products, and 2024H1's DC-DC product revenue increased 210.57% year over year. In terms of BMS, the company launched a variety of high-side/low-side drive BMS AFE chips that can support battery management system applications within 110V, which have been supplied in batches on well-known brands of electric two-wheelers and tricycles. In terms of motor drives, the company has now applied a number of single/three-phase BLDC motor drive control chips in batches to cooling systems in applications such as CPUs, GPUs, PCs, servers, and lithium battery energy storage. In addition, the company continues to deeply cultivate and launch various new products in AC-DC, LED drivers, etc., and has also vigorously expanded the layout of signal chain products such as amplifiers, converters, sensors, isolation chips, and interface chips.

Investment advice: We expect the company's revenue for 2024/2025/2026 to be 0.705/0.822/0.975 billion yuan, and net profit to mother 0.002/0.024/0.043 billion yuan, respectively. Corresponding to 2025/2026 PE was 73.77/40.88 times, respectively, maintaining the “gain” rating.

Risk warning: New product development falls short of expectations; downstream demand falls short of expectations; industry competition intensifies.