Deye(SH:605117) Haitong Securities·2024-09-01 04:40Investment Rating - The investment rating for the company is "Outperform the Market" [2][5] Core Views - The company is expected to benefit from high growth in emerging markets, with significant increases in both revenue and profit anticipated in the upcoming quarters [5][6] - The company's performance in Q2 2024 showed a revenue increase of 52.1% quarter-on-quarter and a profit increase of 85.4% quarter-on-quarter, indicating strong recovery and demand in the photovoltaic inverter market [5][6] - The company has a strong market position in emerging markets, particularly in South Africa, Pakistan, India, the Philippines, and Myanmar, where there is a rigid demand for energy solutions [6][7] Financial Overview - For the first half of 2024, the company reported revenue of 4.75 billion yuan, a year-on-year decrease of 3.0%, and a net profit of 1.24 billion yuan, a year-on-year decrease of 2.2% [5][7] - In Q2 2024, revenue reached 2.86 billion yuan, a year-on-year increase of 2.0% and a quarter-on-quarter increase of 52.1%, with net profit at 800 million yuan, a year-on-year increase of 19.0% and a quarter-on-quarter increase of 85.4% [5][6] - The company sold a total of 711,700 inverters in the first half of 2024, with significant contributions from energy storage inverters and micro-grid inverters [5][6] Segment Performance - In H1 2024, the revenue breakdown showed that inverter sales were 2.32 billion yuan (down 26.06% year-on-year), energy storage battery packs were 770 million yuan (up 74.82% year-on-year), heat exchangers were 1.06 billion yuan (up 16.73% year-on-year), and dehumidifiers were 450 million yuan (up 31.98% year-on-year) [5][6] - The energy storage battery pack business is rapidly growing, with revenue expected to reach 2.32 billion yuan in 2024, reflecting a year-on-year growth of 162.9% [8][10] Earnings Forecast and Valuation - The company is projected to achieve net profits of 3.02 billion yuan and 3.85 billion yuan in 2024 and 2025, respectively, representing year-on-year growth rates of 68.8% and 27.4% [7][10] - The report assigns a price-to-earnings (P/E) ratio of 24-25 times for 2024, suggesting a reasonable value range of 113.76 to 118.50 yuan per share [6][10]