Yuneng Technology (SH:688348) Huafu Securities·2024-09-05 08:13Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 20% relative to the market benchmark index within the next six months [12]. Core Insights - The company reported a revenue of 899 million yuan for the first half of 2024, representing a year-on-year increase of 37%, while the net profit attributable to shareholders decreased by 35% to 88 million yuan [1]. - In Q2 2024, the company achieved a revenue of 470 million yuan, a year-on-year increase of 112% and a quarter-on-quarter increase of 10%, with a net profit of 48 million yuan, up 189% year-on-year and 20% quarter-on-quarter [1]. - The company’s micro-inverter and energy communication device sales showed a quarter-on-quarter growth, with Q2 2024 revenue reaching 319 million yuan, a 6.82% increase from the previous quarter [1]. - The company’s inventory management has improved, with a significant reduction in inventory levels, and it is expected that shipments will grow by approximately 20% for the full year 2024 due to increased demand in the European DIY market [1]. Financial Performance Summary - For the first half of 2024, the company’s micro-inverter and energy communication device revenue was 620 million yuan, with a gross margin of 41.73% [1]. - The company’s smart control circuit breaker business showed strong performance, with Q2 2024 revenue of 46 million yuan, a quarter-on-quarter increase of 52.1% [1]. - The energy storage business also contributed positively, with total revenue of 178 million yuan for the first half of 2024, including 92 million yuan from industrial and commercial storage systems in Q2 [1]. - The company’s financial projections for 2024-2026 indicate a decrease in net profit estimates due to competitive pressures, with expected net profits of 260 million yuan in 2024, 360 million yuan in 2025, and 450 million yuan in 2026 [1][2]. Valuation Metrics - The current stock price corresponds to a price-to-earnings ratio (P/E) of 27.2 for 2024, 19.9 for 2025, and 15.7 for 2026 [2]. - The company’s earnings per share (EPS) is projected to be 1.67 yuan in 2024, 2.29 yuan in 2025, and 2.90 yuan in 2026 [2][10].