Deye(SH:605117) ZHONGTAI SECURITIES·2024-09-06 01:00Investment Rating - The report assigns a rating of "Buy" for the company, indicating a positive outlook for future performance [5]. Core Insights - The company is projected to experience significant revenue growth, with estimates of $7.48 billion in 2023, increasing to $16.72 billion by 2026, reflecting a compound annual growth rate (CAGR) of 42.9% from 2022 to 2023 and 18.1% from 2025 to 2026 [5][6]. - Earnings per share (EPS) are expected to rise from $2.81 in 2023 to $6.46 in 2026, showcasing a strong growth trajectory [5][6]. - The price-to-earnings (P/E) ratio is forecasted to decrease from 30.6 in 2023 to 13.3 by 2026, suggesting that the stock may become more attractive as earnings grow [5][6]. Financial Performance Summary - Revenue projections for the company are as follows: $5.96 billion in 2022, $7.48 billion in 2023, $11.16 billion in 2024, $14.16 billion in 2025, and $16.72 billion in 2026, with year-over-year growth rates of 42.9%, 25.6%, 49.2%, 26.9%, and 18.1% respectively [5][6]. - The company's net income is expected to grow from $1.52 billion in 2022 to $4.12 billion in 2026, with a year-over-year growth rate of 162.3% in 2023 and 14.7% in 2026 [5][6]. - The report highlights a projected return on equity (ROE) of 34.2% in 2024, decreasing to 30.8% by 2026, indicating strong profitability [5][6]. Valuation Metrics - The report indicates a decreasing trend in the price-to-book (P/B) ratio from 10.5 in 2023 to 4.1 in 2026, which may suggest an undervaluation of the stock as the company grows [5][6]. - The enterprise value to EBITDA (EV/EBITDA) ratio is projected to decline from 74 in 2023 to 30 by 2026, indicating improved operational efficiency and valuation attractiveness [5][6].