Deye(SH:605117) Huachuang Securities·2024-07-10 10:01Investment Rating - The report maintains a "Recommended" rating for the company, with an expected target price of 88.38 CNY based on a 20x PE for 2024 [5][17]. Core Views - The company is expected to benefit from the explosive demand in emerging markets and the gradual recovery of European demand, leading to a significant increase in its inverter business [2][3]. - The company's net profit for H1 2024 is projected to be between 1.183 to 1.283 billion CNY, showing a year-on-year change of -6.39% to +1.53% [2]. - The second quarter of 2024 is anticipated to show a net profit of 750 to 850 million CNY, representing a year-on-year increase of 11.15% to 25.96% and a quarter-on-quarter increase of 73.25% to 96.35% [2]. Financial Performance Summary - Total revenue for 2024 is expected to reach 11.78 billion CNY, reflecting a year-on-year growth of 57.5% [3]. - The net profit attributable to the parent company is projected to be 2.82 billion CNY for 2024, with a growth rate of 57.5% compared to the previous year [3]. - The company’s earnings per share (EPS) is forecasted to be 4.42 CNY in 2024, with a PE ratio of 17 [3]. Market Demand and Business Growth - The company has seen strong demand in emerging markets such as Brazil, India, and Southeast Asia, with inverter exports to these regions showing significant year-on-year growth rates of 123%, 184%, and 351% respectively [2]. - The battery pack business is expected to continue expanding, with high profitability anticipated due to the decreasing costs of battery cells [2]. - The traditional home appliance segment, particularly dehumidifiers, has performed well, with the company maintaining the top sales position in online platforms for eight consecutive years [2].