Shulou(Shulou.com)11/24 Report--

As August draws to a close and the release of financial results enters an intensive period, listed companies usher in a big performance test. On August 21, Monster charging (EM.US), the first share of shared portable battery, released unaudited financial results for the second quarter ended June 30, 2023.

According to the financial report, Monster charging's operating income in the second quarter was 1.0357 billion yuan, an increase of 50.0% compared with the same period last year. The adjusted net profit was 30.1 million yuan, a significant improvement from the net loss of 177.5 million yuan in the same period last year and a 75.8 per cent increase from the first quarter. Under the US accounting standards, the net profit is 24.5 million yuan, the operating profit is 13.6 million yuan, and profitability continues to improve.

Based on the increase in revenue performance in the second quarter, as of June 30, Monster charging service has covered 1.109 million POI (point) month-on-month growth of more than 10%, of which 62% of the POI is the proxy point.

In addition, the number of online sharing portable battery that the company can use is 8 million, a net increase of 800000 over the first quarter, with a cumulative number of registered users reaching 362.5 million, an increase of 15.4 million over the first quarter.

On the second quarter performance, Monster charging CEO Cai Guangyuan said: "We are satisfied with the positive recovery trend of revenue and earnings in the second quarter." Our operations continue to revolve around the two core strategies of 'continuously expanding network coverage' and 'improving operational efficiency', achieving industry-leading growth and optimizing operational leverage. With the gradual establishment of our competitive advantage, Monster charging has become more competitive in the industry, and its leading position is becoming more and more stable. In the second half of the year, we are confident that we can continue to bring value to users, partners and shareholders. "

On August 22, Huaxing Securities released a rating report that maintained the "buy" rating of Monster charging, with a maximum target price of $3, in line with the previous target price.

The market is picking up, sharing portable battery for the better in the future

The strong recovery of the monster charging performance is inseparable from the warming of the environment. Entering the post-epidemic era, with the comprehensive lifting of the control of the epidemic, residents' consumption motivation and confidence have been steadily restored, and the sharing portable battery industry has ushered in a comprehensive recovery.

From the perspective of segment, compared with the same period in 2022, the revenue of monster charging shared charging business increased steadily by 49.6% to 1.0263 billion yuan, of which direct operation mode accounted for 29.3% and channel mode accounted for 70.7%.

In addition, thanks to the gradual recovery of offline passenger traffic and the improvement of advertising efficiency, the growth of Monster charging advertising services and other businesses dominated by new business is also gratifying, with a year-on-year increase of 107.8%, contributing 9.4 million yuan in revenue.

As the demand for travel in the post-epidemic era pushes up the consumer side, the number of residents going out to spend and use services will increase significantly. This will encourage more users to use shared portable battery, increase market demand, and bring more business opportunities and opportunities for monster charging.

At the same time, the recovery of the market will inevitably cause some competitors to withdraw from the market because of financial difficulties or operational restrictions. This will reduce competition in the industry and create greater market share and opportunities for companies such as monster charging.

It is worth noting that during the reporting period, in order to cater to the return of traffic and the wave of recovery in consumption, Monster charging's innovative products and marketing activities continued to gain consumer recognition on the consumer side. Monster charging recorded 1.718 billion charging service orders in the second quarter, an increase of 24.1% over the same period in 2022, with an average of about 1.9 million order transactions per day, according to the financial report.

In terms of capital, as of the end of the second quarter, the cash and cash equivalents, restricted funds and short-term investments recharged by Monster were 3.2 billion yuan.

Sound cash flow means that the company has sufficient funds to cover day-to-day operating expenses, supplier payments, employee salaries, etc. This provides a stable operating basis for the company and reduces the risk of production disruptions, supply chain problems or employee turnover caused by a shortage of funds. Stable cash flow also enables the company to better plan and implement investment plans and improve market competitiveness.

"direct operation + agent" drives the monster "growth"

After the release of the results, Monster charging COO Xu Peifeng said: "driven by the dual engines of direct operation mode and channel mode, our operating performance has reached a new high and better grasped the opportunity of market recovery." On the one hand, as offline traffic gradually returns to normal, the kinetic energy of our direct operation mode is released, digging out more high-quality points. On the other hand, the channel model helps us to effectively expand to more regions and diversify the composition of POI. "

The direct operation and agent dual-core co-drive of Monster charging has created a business development model of rising quality of the enterprise. Monster charging continues to deepen the development model of "direct camp + agent twin-engine drive", opens up more joint-operation cities, stimulates the synergistic efficiency of direct operation and agent mode, and enhances the network effect.

It is understood that as early as 2022, during the headwind period of the industry, Monster innovated and launched a direct generation model, increased agency support, and used its own operational experience and resources to provide full-life cycle operation support for partners. The innovation of this model also helps brands achieve the growth of the market and the scale of users.

At the same time, Monster charging relies on a professional team and sufficient funds to open up the market, and the cooperation with high-quality KA not only strengthens the brand value, but also provides long-term business operation guarantee for partners. Based on the support of the strategy of "direct marketing + agent twin-engine drive", the number of POI recharged by Monster maintained a steady growth even during the epidemic, with a compound POI growth rate of 19% in 2019 and 2022, according to the China Development Network.

Therefore, under the promotion of the "direct assistance" program, the channel partners of monster charging have been increasing, and their market share is also increasing. With the pace of recovery of consumption and accelerated repair of the industry, monster charging will better seize the opportunity of the development of the shared charging industry and achieve more long-term development by virtue of significant economies of scale, network effects and good market reputation.

Welcome to subscribe "Shulou Technology Information " to get latest news, interesting things and hot topics in the IT industry, and controls the hottest and latest Internet news, technology news and IT industry trends.