Deye(SH:605117) EBSCN·2024-07-05 07:01Investment Rating - The report maintains a "Buy" rating for the company [4][5]. Core Views - The company is expected to benefit significantly from the booming demand for solar storage in emerging markets, with a notable increase in inverter exports to countries like Pakistan, India, Nigeria, Vietnam, Saudi Arabia, and Thailand [3]. - The company is accelerating its expansion into the European market, which is expected to enhance its market share and sales volume [3]. - The energy storage battery pack business is rapidly developing, with integrated products leading to increased revenue and improved profitability due to declining costs [3]. Financial Summary - The company forecasts a net profit of 11.8 to 12.8 billion yuan for H1 2024, reflecting a year-on-year change of -6.4% to +1.5% [2]. - For Q2 2024, the expected net profit is between 7.5 to 8.5 billion yuan, showing a year-on-year increase of 11.1% to 25.9% [2]. - The revenue projections for 2024 to 2026 are adjusted to 28 billion, 35 billion, and 42 billion yuan respectively, with increases of 26%, 24%, and 21% [3]. Market Dynamics - The report highlights a significant increase in solar storage demand in emerging markets, driven by a reduction in costs for photovoltaic components and storage systems [3]. - The company has established a strong presence in the Asia-Pacific and African markets, positioning itself well to capitalize on the growing demand [3]. - The European market is also showing signs of recovery, with expectations for increased demand for household storage solutions [3].