Deye(SH:605117) SINOLINK SECURITIES·2024-08-27 03:42Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company reported a revenue of 4.75 billion RMB in the first half of 2024, a year-on-year decrease of 3.0%, and a net profit attributable to shareholders of 1.24 billion RMB, down 2.2%, which was within the expected range [2] - The company's Q2 performance showed resilience with a revenue of 2.86 billion RMB, a year-on-year increase of 2.0% and a quarter-on-quarter increase of 52.0%, while the net profit reached 803 million RMB, up 19.0% year-on-year and 85.5% quarter-on-quarter [2] - The inverter sales revenue for the first half was 2.32 billion RMB, down 26.1%, primarily due to a shift in product mix affecting high-value energy storage inverters [2] - The energy storage battery segment saw significant growth, with revenue of 765 million RMB, a year-on-year increase of 74.82%, and an estimated sales volume of 110,000 units, leading to a storage ratio increase of 21 percentage points compared to the full year of 2023 [2] - Traditional home appliance business slightly exceeded expectations, with heat exchangers generating 1.06 billion RMB in revenue, up 16.7%, and dehumidifiers achieving 454 million RMB, up 32.0% [2] - Accounts receivable turnover days increased slightly to 31 days, up approximately 9 days year-on-year, attributed to a higher proportion of emerging markets and increased market competition [2] Summary by Sections Performance Analysis - The company achieved a revenue of 4.75 billion RMB in H1 2024, down 3.0% year-on-year, and a net profit of 1.24 billion RMB, down 2.2% [2] - Q2 revenue was 2.86 billion RMB, up 2.0% year-on-year and 52.0% quarter-on-quarter, with net profit at 803 million RMB, up 19.0% year-on-year and 85.5% quarter-on-quarter [2] Business Segments - Inverter sales revenue was 2.32 billion RMB, down 26.1%, with energy storage inverters seeing a decline in shipment volume [2] - Energy storage battery revenue was 765 million RMB, up 74.82%, with a significant increase in storage ratio [2] - Traditional home appliance revenue included 1.06 billion RMB from heat exchangers and 454 million RMB from dehumidifiers, reflecting strong demand due to extreme weather [2] Financial Projections - The net profit forecasts for 2024-2026 have been adjusted to 2.82 billion RMB, 3.58 billion RMB, and 4.22 billion RMB, respectively, with corresponding P/E ratios of 20, 16, and 13 [2]