Yuneng Technology (SH:688348) Xin Lang Cai Jing·2025-10-01 00:28Performance Review - In H1 2025, the company reported revenue of 651 million yuan, a year-on-year decrease of 27.54%, and a net profit attributable to shareholders of 79 million yuan, down 9.88% year-on-year. The net profit excluding non-recurring items was 57 million yuan, a decline of 36.05% year-on-year. In Q2 2025, revenue reached 461 million yuan, a year-on-year decrease of 2.27% but a quarter-on-quarter increase of 141.36%. The net profit attributable to shareholders was 50 million yuan, up 4.96% year-on-year and 74.02% quarter-on-quarter. The net profit excluding non-recurring items was 35 million yuan, down 33.20% year-on-year but up 63.98% quarter-on-quarter [1]. Microinverter & Energy Communication Device Sales - In H1 2025, the company generated revenue of 358 million yuan from microinverters and energy communication devices, a year-on-year decline of 42.08%, primarily due to a decrease in new installations in traditional overseas photovoltaic markets. The shipment volume for H1 2025 was approximately 340,000 units, down 40.04% year-on-year, with Q2 2025 shipments at about 190,000 units, reflecting a quarter-on-quarter increase of 26.67%. This increase was attributed to the company's strategy of offering slight discounts to ensure growth in shipment volume [2]. Energy Storage Business Growth - The company's energy storage business maintained a high growth rate in H1 2025, becoming a significant driver of revenue growth. The revenue from industrial and commercial storage systems was 190 million yuan, up 6.43% year-on-year, while household storage product revenue was 20 million yuan, an increase of 34.11% year-on-year, benefiting from the global demand for commercial and industrial energy storage and the company's channel expansion. However, revenue from smart control circuit breakers was 58 million yuan, down 24.24% year-on-year, likely impacted by market demand structure adjustments and intensified industry competition [3]. Cost Management and Cash Position - The company's expense ratio for H1 2025 was 10.51%, a decrease of 6.5 percentage points compared to 2024. In Q2 2025, the expense ratio was 5.5%, reflecting a quarter-on-quarter decrease of 17.2 percentage points, mainly due to increased revenue and foreign exchange gains. As of H1 2025, the company had cash and cash equivalents of 1.38 billion yuan and trading financial assets of 530 million yuan, totaling nearly 2 billion yuan in cash, which is sufficient to support further expansion in new businesses such as energy storage [4]. Profit Forecast and Investment Recommendation - Considering industry competition, the company has revised its net profit forecasts for 2025-2027 to 195 million yuan, 249 million yuan, and 327 million yuan, respectively. The previous estimates for 2025-2026 were 360 million yuan and 450 million yuan. The current stock price corresponds to price-to-earnings ratios of 47.8, 37.5, and 28.5 times for the respective years. Given the company's position as a leading microinverter manufacturer and the expected continued growth in shipments post-inventory digestion, along with the energy storage business entering a phase of increased volume, a "buy" rating is maintained [5].