The company disclosed that in the first three quarters of 2024, the company achieved revenue, net profit, and deducted non-net profit of 2.095, 0.271, and 0.26 billion yuan, respectively, with year-on-year increases of 20.91%, -0.93%, and 0.32%. Among them, Q3 achieved revenue in a single quarter, adding net profit, and deducting non-net profit of 0.664, 0.089, and 0.086 billion yuan, with year-on-year increases of 5.32%, -2.80%, and -2.47%.

Business analysis for the first three quarters of 2024. In the first three quarters of 2024, the company achieved revenue of 2.095 billion yuan, a year-on-year increase of 20.91%, and a comprehensive gross profit margin of 40.17%, a year-on-year decrease of 2.08 pcts. Among them, Q3 achieved revenue of 0.664 billion yuan in a single quarter, up 5.32% and -20.11% month-on-month. Net profit was 0.089 billion yuan, a year-on-month decrease of 2.80% and 22.64%; after deducting non-net profit of 0.086 billion yuan, a year-on-month decrease of 2.47% and 24.09%. The comprehensive gross profit margin was 41.46%, with year-on-month growth of -2.03 and 1.87pct.

The charging pile business continues to expand. According to the Passenger Federation data, in September 2024, the domestic NEV market retailed 1.123 million vehicles, up 50.9% year on year and 9.6% month on month; the NEV retail penetration rate exceeded 50% for three consecutive months, and the continuous increase in penetration rate drove demand for charging piles. Overseas, the company's charging pile business expanded early, and has achieved certain results in Europe. Since this year, it has also successively reached strategic cooperation with US companies ChargeTronix and FCME to boost the development of its business in North America, and it is expected that it will continue to benefit in the future.

The energy storage business product matrix continues to be enriched, and there is still significant potential for development. Technology research and development advantages are one of the company's strengths. Through continuous technological innovation, the company meets customer needs and continues to expand its product matrix. In September, the Modular Family released a variety of modular products, high-power liquid-cooled modular energy storage converters, high-power AC low-voltage energy storage converters, and modular energy storage converters. At present, domestic energy storage will maintain a high level of prosperity. In the future, as the US enters a cycle of interest rate cuts, the company's contribution to the overseas energy storage business is also expected to further advance.

Businesses such as power quality & battery testing are growing steadily. The company is deeply involved in the field of power energy, and its power quality solutions are highly recognized and have been widely used in more than 50 countries and regions. The P5 active filter model and real-time controlled dynamic voltage regulator were launched in October, and won the “Power Quality Pioneer Award”.

In terms of battery testing, with the increase in R&D investment by lithium battery companies and the increase in overseas production capacity investment, the battery testing business relies on the expansion of sales opportunities such as channels, industries, and markets, and is expected to maintain steady growth.

Investment advice: The company's net profit for 2024-2025 is estimated to be 0.435 or 0.573 billion yuan, corresponding to PE18X and 14X, maintaining a “highly recommended” rating.

Risk warning: Overseas trade policy risks; risk of declining profits due to industrial competition; risk of integrated management and collaboration among business departments, etc.