Core Viewpoint - The report from Kaiyuan Securities indicates that the company, Deye Co., Ltd., is experiencing significant growth in its business, particularly in the energy storage sector, with a strong increase in net profit and sales volume in the first half of 2025 [1] Financial Performance - In the first half of 2025, the company's net profit attributable to shareholders reached 1.522 billion yuan, representing a year-on-year increase of 23.18%, with a gross margin of 37.48% [1] - In Q2 2025, the net profit attributable to shareholders was 817 million yuan, showing a year-on-year increase of 1.72% and a quarter-on-quarter increase of 15.74%, with a gross margin of 37.71% [1] Market Demand - The global demand for industrial and commercial energy storage is rapidly increasing, particularly in Europe, driven by subsidies and the decline of Feed-in Tariffs (FIT) [1] - Countries such as Pakistan, Myanmar, Nigeria, and those in the Middle East are experiencing strong demand for energy storage due to high electricity prices and frequent power outages [1] Sales Performance - In the first half of 2025, the company sold a total of 315,600 energy storage inverters, marking a year-on-year increase of 47.41%, with 272,700 units for residential storage and 42,900 units for industrial storage (over 200% year-on-year growth) [1] - The energy storage battery pack business saw rapid growth, achieving operating revenue of 1.422 billion yuan in the first half of 2025, a year-on-year increase of 85.80%, accounting for 25.78% of the company's main business revenue, with a gross margin of 35.01% [1] Employee Engagement - The company has launched an employee stock ownership plan to enhance employee cohesion [1] Investment Rating - Given the rapid growth and strong profitability of the company's industrial storage inverters and battery pack business, the investment rating is maintained at "Buy" [1]

Core Viewpoint - The report from Open Source Securities indicates that the company achieved a net profit attributable to shareholders of 1.522 billion yuan in the first half of 2025, representing a year-on-year increase of 23.18%, with a gross margin of 37.48% [1] Financial Performance - In Q2 2025, the net profit attributable to shareholders was 817 million yuan, showing a year-on-year increase of 1.72% and a quarter-on-quarter increase of 15.74%, with a gross margin of 37.71%, aligning with expectations [1] - For the first half of 2025, the company sold a total of 315,600 energy storage inverters, marking a year-on-year increase of 47.41%, with 272,700 units for household storage inverters and 42,900 units for industrial storage, the latter showing a growth of over 200% year-on-year [1] Business Growth - The energy storage battery pack business experienced rapid growth, achieving operating revenue of 1.422 billion yuan in the first half of 2025, a year-on-year increase of 85.80%, accounting for 25.78% of the company's main business revenue, with a gross margin of 35.01% [1] - The company has launched an employee stock ownership plan to enhance employee cohesion [1] Market Demand - Global industrial and commercial storage demand has rapidly increased, particularly in Europe, driven by subsidy support and FIT decline, while countries like Pakistan, Myanmar, Nigeria, and those in the Middle East are experiencing strong demand due to high electricity prices and frequent power outages [1]

Core Viewpoint - The article discusses the growth and competitive landscape of the home energy storage and portable energy storage markets, highlighting significant trends, forecasts, and the upcoming 2025 forum focused on battery technology and safety [3][4][6]. Home Energy Storage - In 2024, the global home energy storage shipment is projected to reach 27.8 GWh, marking a 19% year-on-year increase, with Chinese companies accounting for 75% of the shipments [3]. - The leading regions for home energy storage consumption include Europe, the USA, Ukraine, Japan, Australia, Africa, the Middle East, ASEAN, and Russia, with Europe being the largest and most mature market [3]. - The USA, Ukraine, Australia, South Africa, Nigeria, and Brazil are expected to see rapid growth in 2024 due to various factors, including declining electricity prices [3]. - SPIR forecasts that the global home energy storage market will reach 180 GWh by 2030, representing a 547% increase from 2024 [3]. - The top 10 companies in global home energy storage shipments include Huawei, BYD, Airo Energy, and others [3]. Portable Energy Storage - The global portable energy storage shipment is expected to reach 11 million units in 2024, reflecting a 90% year-on-year growth [4]. - The USA is identified as the largest and most mature market for portable energy storage, driven by outdoor activities and a developed RV market [4]. - Ukraine is projected to experience the fastest growth in 2024 due to energy shortages caused by the ongoing conflict, increasing the demand for emergency power solutions [4]. - By 2030, the global portable energy storage market is anticipated to reach 28 million units, a 156% increase from 2024, fueled by outdoor economy growth and emergency power needs [4]. - The top 10 companies in global portable energy storage shipments include EcoFlow, BLUETTI, Jackery, and others [5]. Industry Trends and Challenges - The article notes the emergence of new technologies and materials in battery development, such as fast charging, solid-state, sodium batteries, and full-tab designs, while also highlighting ongoing safety challenges [5]. - The upcoming forum will address key issues in battery safety and innovation, aiming to foster collaboration among industry stakeholders [6][10]. Forum Details - The 2025 forum will take place on September 26, 2025, in Shenzhen, focusing on high safety and building a new ecosystem for home and portable energy storage [6][11]. - The event will gather over 600 decision-makers from core enterprises and reach more than 20,000 professionals online [10].

Investment Rating - The report maintains a "Buy" rating for the company, expecting a stock price increase of over 15% relative to the industry index in the next six months [5][17]. Core Views - The company is expected to achieve significant revenue growth, with projected revenues of 135.22 billion yuan, 159.69 billion yuan, and 184.44 billion yuan for the years 2025 to 2027, respectively. Corresponding net profits are projected to be 34.36 billion yuan, 39.15 billion yuan, and 45.11 billion yuan, indicating year-on-year growth rates of 16.1%, 13.9%, and 15.2% [4][5]. - The company is actively expanding its product offerings in the inverter segment and enhancing its overseas distribution channels, which is expected to strengthen its competitive position in the solar storage niche [4][5]. Financial Performance Summary - For 2023, the company reported a revenue of 7,480 million yuan, with a year-on-year growth rate of 25.6%. The net profit attributable to the parent company was 1,791 million yuan, reflecting an 18.0% increase [1][4]. - The company achieved a revenue of 55.35 billion yuan in the first half of 2025, a 16.58% increase year-on-year, with a net profit of 15.22 billion yuan, up 23.18% [1][2]. - The inverter segment shipped 763,800 units in the first half of 2025, contributing 26.44 billion yuan in revenue, a 13.9% increase year-on-year, with a gross margin of 47.83% [2][3]. - The energy storage battery pack business saw a remarkable revenue increase of 85.8% year-on-year, contributing 14.22 billion yuan in the reporting period [3]. Valuation Metrics - The report indicates that the company's price-to-earnings (P/E) ratio is projected to decrease from 30.3 in 2023 to 12.0 by 2027, suggesting an attractive valuation as earnings grow [1][4]. - The price-to-book (P/B) ratio is expected to decline from 10.4 in 2023 to 3.4 in 2027, indicating potential for value appreciation [1][4].

Group 1 - The core viewpoint of the report is that China Galaxy has given a recommendation rating to Deyang Co., Ltd. (605117.SH) based on several positive factors [1] - Significant increase in industrial storage volume is highlighted as a key reason for the positive rating [1] - High growth in energy storage battery pack volume is also noted as a contributing factor [1] - Continuous deepening of overseas expansion is emphasized as a strategic advantage for the company [1]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a strong performance in Q2, with revenue and net profit growth in line with expectations. The company achieved a revenue of 5.535 billion yuan in the first half of 2025, representing a year-over-year increase of 16.58%, and a net profit of 1.522 billion yuan, up 23.18% year-over-year [4] - The report highlights the rapid growth in the industrial and commercial energy storage market, with a significant increase in sales of energy storage inverters and battery packs. The company sold 315,600 energy storage inverters in the first half of 2025, a year-over-year increase of 47.41% [5] - The report also notes a slight decline in the sales of string inverters and micro inverters, while the gross margin for heat exchangers has improved [6] Financial Summary - The company’s financial performance shows a projected revenue increase from 7.48 billion yuan in 2023 to 18.799 billion yuan in 2027, with a compound annual growth rate (CAGR) of approximately 25.6% [8] - The net profit is expected to grow from 1.791 billion yuan in 2023 to 5.013 billion yuan in 2027, with a year-over-year growth rate of 18.0% to 17.9% [8] - The gross margin is projected to decline slightly from 39.8% in 2023 to 36.8% in 2027, while the net profit margin is expected to stabilize around 26.7% [11]

Summary of the Conference Call for 德业股份 Company Overview - The company reported a revenue of 5.773 billion yuan for the first half of 2025, representing a year-on-year growth of 21.97% [2] - Net profit reached 1.531 billion yuan, up 18.67% year-on-year, with a non-GAAP net profit of 1.603 billion yuan [2][3] - The overall gross margin for the first half of 2025 was 37%, down 8 percentage points from the previous year [2][6] Key Business Segments - **Energy Storage Inverters**: Revenue from energy storage inverters was 2.09 billion yuan, with household storage contributing 1.456 billion yuan (up 8.75%) and commercial storage at 638 million yuan (up 1,303%) [2][4] - **Energy Storage Battery Packs**: Revenue reached 1.42 billion yuan, showing an 85.8% increase year-on-year [2][4] - **Dehumidifiers**: Revenue was 400 million yuan, with a gross margin of 36%, down 1 percentage point from the previous year [4][6] - **Heat Exchangers**: Revenue was 800 million yuan, down 17% year-on-year, with a gross margin of 12%, up 1 percentage point [5][6] Market Performance and Trends - **European Market**: Strong demand in Eastern Europe and Spain, driven by subsidy policies and power outages. The overall performance in Europe is expected to exceed last year's results [2][8] - **Southeast Asia**: Rapid growth in markets like the Philippines, Vietnam, and Thailand, with significant market share [2][16][18] - **Africa**: Notable performance in countries like Lebanon, Iraq, Sudan, and Nigeria, contributing to overall shipment scale [2][16][19] Future Outlook - The company aims to achieve a non-GAAP profit target of 3.1 billion yuan for the full year [7] - New products are expected to be launched in the third quarter, which may drive growth [7] - The company anticipates that the European market will continue to benefit from subsidy policies, particularly in Romania [14] Competitive Landscape - The company maintains a strong market position in Southeast Asia despite competitive pricing from rivals. It believes that significant price cuts by competitors would not sustainably affect its market share [46][47] Product Development and Innovations - The company is expanding into commercial microgrid and off-grid applications, with plans to launch new products [4][29] - A new high-capacity inverter is expected to cater to complex loads and microgrid systems, particularly in Africa [37] Supply Chain and Cost Management - The gross margin for energy storage battery packs is expected to remain around 35% in the second half of 2025, with stable supply from domestic battery manufacturers [23] - The company is also exploring new product lines, including data center power solutions [29] Conclusion - The company is well-positioned for growth in both domestic and international markets, with a focus on expanding its product offerings and maintaining competitive pricing strategies. The outlook for the second half of 2025 appears optimistic, supported by strong demand in key markets and new product launches.

Investment Rating - The report maintains a "Recommended" rating for the company [5] Core Views - The company achieved significant growth in its inverter and energy storage battery segments, with a notable increase in sales and revenue [2][3] - The company reported a revenue of 5.535 billion yuan for H1 2025, representing a year-on-year increase of 16.58%, and a net profit of 1.522 billion yuan, up 23.18% year-on-year [1] - The inverter sales reached 763,800 units in H1 2025, with a revenue of 2.644 billion yuan, reflecting a year-on-year growth of 13.90% [2] - The energy storage battery segment saw a remarkable revenue increase of 85.80% year-on-year, totaling 1.422 billion yuan in H1 2025 [2] Summary by Sections Financial Performance - For H1 2025, the company reported operating income of 5.535 billion yuan, a year-on-year increase of 16.58%, and a net profit attributable to shareholders of 1.522 billion yuan, up 23.18% [1] - The second quarter of 2025 saw operating income of 2.969 billion yuan, a year-on-year increase of 3.65% and a quarter-on-quarter increase of 15.70% [1] Product Performance - The inverter segment showed stable growth, with significant sales in commercial storage products, particularly in overseas markets driven by policy support [2] - The company launched new products, including off-grid energy storage inverters and expanded its energy storage solutions [2] Future Projections - The company is expected to achieve revenues of 13.248 billion yuan, 15.975 billion yuan, and 18.937 billion yuan for 2025, 2026, and 2027 respectively, with corresponding growth rates of 18.2%, 20.6%, and 18.5% [3][4] - Net profit projections for the same years are 3.529 billion yuan, 4.206 billion yuan, and 4.982 billion yuan, with growth rates of 19.2% for both 2025 and 2026, and 18.4% for 2027 [3][4]

Investment Rating - The report maintains a "Buy" rating for the company [5][10]. Core Insights - The company achieved a revenue of 5.535 billion yuan in H1 2025, representing a year-on-year increase of 16.58%, and a net profit attributable to shareholders of 1.522 billion yuan, up 23.18% year-on-year [1][5]. - In Q2 2025, the company reported a revenue of 2.969 billion yuan, a year-on-year increase of 3.65% and a quarter-on-quarter increase of 15.70%, with a net profit of 817 million yuan, reflecting a year-on-year growth of 1.72% and a quarter-on-quarter growth of 15.74% [1][5]. - The company's commercial energy storage products have seen significant sales growth, with a total of 763,800 inverters sold in H1 2025, including 272,700 household storage units and 42,900 commercial storage units [1]. - The company has launched new products in the energy storage sector, expanding its power range and introducing a modular design for its storage solutions, enhancing flexibility and scalability [1][2]. Financial Performance Summary - The company’s battery pack product revenue reached 1.422 billion yuan in H1 2025, marking an impressive year-on-year growth of 85.80% [2]. - The company has announced an employee stock ownership plan, aiming to bind core talent and boost future development confidence, with a target of achieving a net profit of no less than 3.1 billion yuan by 2025 [2]. - The profit forecasts for 2025-2027 have been adjusted to 3.612 billion yuan, 4.266 billion yuan, and 5.003 billion yuan respectively, with year-on-year growth rates of 22.0%, 18.1%, and 17.3% [2][3].

Core Viewpoint - DeYe Co., Ltd. has shown a positive stock performance with a year-to-date increase of 4.22% and significant growth in revenue and net profit for the first half of 2025, indicating strong operational performance and investor interest [1][2]. Financial Performance - For the first half of 2025, DeYe Co., Ltd. achieved a revenue of 5.535 billion yuan, representing a year-on-year growth of 16.58% [2]. - The net profit attributable to shareholders for the same period was 1.522 billion yuan, reflecting a year-on-year increase of 23.18% [2]. Stock Market Activity - As of August 27, 2023, DeYe's stock price was 61.19 yuan per share, with a market capitalization of 55.343 billion yuan [1]. - The stock has experienced a 6.68% increase over the past five trading days and a 16.80% increase over the past 20 days [1]. Shareholder Information - As of June 30, 2025, the number of shareholders increased to 52,300, a rise of 76.28% compared to the previous period [2]. - The average number of circulating shares per shareholder decreased by 20.57% to 17,284 shares [2]. Dividend Distribution - DeYe Co., Ltd. has distributed a total of 4.238 billion yuan in dividends since its A-share listing, with 3.897 billion yuan distributed over the last three years [3]. Institutional Holdings - As of June 30, 2025, Hong Kong Central Clearing Limited was the third-largest circulating shareholder, increasing its holdings by 9.4808 million shares [3]. - Other notable institutional shareholders include QuanGuo XuYuan Mixed A and GuangFa Small Cap Growth Mixed A, both of which increased their holdings [3].