SolaX Power Network Technology (Zhejiang) (688717) 华创证券·2024-09-04 16:37Investment Rating - The report maintains a "Recommend" rating for Airo Energy (688717) with a target price of 75.42 yuan [1][4] Core Views - Airo Energy's Q2 2024 performance showed sequential improvement, with emerging markets contributing to new growth [1] - The company's H1 2024 revenue was 1.584 billion yuan, down 53.41% YoY, while net profit attributable to shareholders was 103 million yuan, down 89.44% YoY [1] - Q2 2024 revenue was 899 million yuan, down 36.96% YoY but up 31.43% QoQ, with net profit attributable to shareholders at 69.05 million yuan, down 85.37% YoY but up 103.31% QoQ [1] - The company's gross margin in H1 2024 was 38.26%, down 1.34 percentage points YoY, while net margin was 6.50%, down 22.19 percentage points YoY [1] - Emerging markets helped improve shipments in Q2 2024, with energy storage battery sales reaching 327MWh and energy storage inverter shipments exceeding 60,000 units in H1 2024 [2] - The company's gross margin decline was attributed to lower margins in emerging markets compared to Europe, with a shift in sales mix impacting overall profitability [2] - Airo Energy has introduced new products such as microinverters and commercial energy storage systems, which have already secured orders [2] - The company's European business share has decreased from over 90% to over 70%, with rapid growth in new markets like Southeast Asia [2] - The report forecasts net profit attributable to shareholders of 498 million yuan, 804 million yuan, and 963 million yuan for 2024, 2025, and 2026, respectively, with corresponding PE ratios of 19x, 12x, and 10x [2] Financial Performance - H1 2024 operating income was 1.584 billion yuan, down 53.41% YoY, with net profit attributable to shareholders at 103 million yuan, down 89.44% YoY [1] - Q2 2024 operating income was 899 million yuan, down 36.96% YoY but up 31.43% QoQ, with net profit attributable to shareholders at 69.05 million yuan, down 85.37% YoY but up 103.31% QoQ [1] - The company's gross margin in H1 2024 was 38.26%, down 1.34 percentage points YoY, while net margin was 6.50%, down 22.19 percentage points YoY [1] - Q2 2024 gross margin was 36.89%, down 2.09 percentage points YoY and 3.16 percentage points QoQ, while net margin was 7.68%, down 25.40 percentage points YoY but up 2.72 percentage points QoQ [1] - The company's operating expenses in H1 2024 were 513 million yuan, up 323 million yuan YoY, with an operating expense ratio of 32.40%, up 26.80 percentage points YoY [2] - Sales expenses increased by 21.36% YoY, management expenses by 54.21% YoY, and R&D expenses by 98.73% YoY, while financial expenses turned positive [2] - The company's R&D team has over 900 employees, accounting for more than 30% of the total workforce [2] Market and Product Development - Airo Energy's shipments improved in Q2 2024 due to emerging market growth, with energy storage battery sales reaching 327MWh and energy storage inverter shipments exceeding 60,000 units in H1 2024 [2] - The company has introduced new products such as microinverters and commercial energy storage systems, which have already secured orders [2] - Airo Energy has actively expanded into new markets like Southeast Asia, reducing its European business share from over 90% to over 70% [2] - The company expects continued improvement in shipments as European demand recovers and emerging markets continue to grow [2] Financial Forecasts - The report forecasts operating income of 3.901 billion yuan, 4.934 billion yuan, and 6.117 billion yuan for 2024, 2025, and 2026, respectively [3] - Net profit attributable to shareholders is expected to be 498 million yuan, 804 million yuan, and 963 million yuan for 2024, 2025, and 2026, respectively [3] - EPS is projected to be 3.11 yuan, 5.03 yuan, and 6.02 yuan for 2024, 2025, and 2026, respectively [3] - The company's PE ratio is expected to be 19x, 12x, and 10x for 2024, 2025, and 2026, respectively [3]