Pylon Technologies(688063) KAIYUAN SECURITIES·2024-08-27 08:31Investment Rating - The investment rating for the company is "Outperform" (Maintain) [3] Core Views - The company has turned around its non-recurring net profit in Q2, indicating a potential inflection point [4] - The decline in revenue is attributed to inventory destocking in the industry, but the company's overall strength supports its long-term competitiveness [4][5] Financial Performance Summary - In H1 2024, the company achieved revenue of 859 million yuan, down 66.4% year-on-year, with a net profit of 20 million yuan, down 97.1% year-on-year [4] - Q2 2024 revenue was 474 million yuan, up 22.9% quarter-on-quarter but down 33.9% year-on-year, with a net profit of 16 million yuan, up 296.9% quarter-on-quarter but down 93.1% year-on-year [4] - The company reported a gross margin of 37.3% and a net margin of 2.3% for H1 2024, with a significant asset impairment loss of 40 million yuan [4] Sales and Market Expansion - The company expects a sequential increase in sales of energy storage systems throughout 2024, with a focus on expanding markets outside Europe and developing products tailored to local user habits in countries like the USA and Japan [5] - In H1 2024, the company sold 571 MWh of energy storage systems, with plans for continued growth in sales volume and revenue [5] Profit Forecast and Valuation - The profit forecast for 2024-2026 has been adjusted, with expected net profits of 251 million yuan, 551 million yuan, and 748 million yuan respectively, leading to an EPS of 1.02 yuan, 2.25 yuan, and 3.05 yuan [4] - The current price-to-earnings ratio (PE) is projected to be 39.1, 17.8, and 13.1 for the years 2024, 2025, and 2026 respectively [4]