Deye(605117) 长江证券·2024-09-12 01:40Investment Rating - The investment rating for the company is "Buy" and is maintained [4]. Core Views - The company reported a revenue of 4.748 billion yuan for H1 2024, a year-on-year decrease of 2.97%, while the net profit attributable to the parent company was 1.236 billion yuan, down 2.21% year-on-year. In Q2 2024, revenue reached 2.864 billion yuan, an increase of 1.98% year-on-year and a significant 52.06% increase quarter-on-quarter. The net profit for Q2 was 803 million yuan, up 18.97% year-on-year and 85.44% quarter-on-quarter, indicating a positive operational trend [5][6]. Summary by Sections Revenue and Profit Analysis - The company's inverter business generated 2.32 billion yuan in revenue for H1 2024, a decline of 26% year-on-year, primarily due to a high base from the previous year in markets like South Africa. However, there was a notable performance in non-European and American markets such as Pakistan, India, Brazil, the Philippines, and Myanmar, leading to a rebound in Q2 with a significant increase in sales [5][6]. Product Performance - In H1 2024, the company sold 712,000 inverters, with breakdowns of 214,000 for storage inverters, 243,000 for micro-inverters, and 255,000 for string inverters. The demand for string inverters came from Brazil, India, and Germany, while storage inverters saw growth in Southeast Asia, the Middle East, Pakistan, and Europe. Micro-inverter demand was strong in Germany, Brazil, and France [5][6]. Financial Metrics - The company maintained a stable gross margin due to scale effects and continuous cost optimization. The battery pack business achieved revenue of 770 million yuan, a year-on-year increase of 75%, with expectations for significant Q2 growth. The company’s other businesses, including dehumidifiers and heat exchangers, also performed well, with revenues of 450 million yuan and 1.06 billion yuan, respectively, showing year-on-year increases of 32% and 17% [5][6]. Future Outlook - The company is expected to continue benefiting from high demand in electricity-deficient markets in Pakistan and Southeast Asia in Q3, with potential new growth from markets like Ukraine and Israel. The non-European and American markets are anticipated to maintain rapid growth, supported by the company's strong market insight, product differentiation, channel expansion, and cost control [6][7]. Profit Forecast - The company is projected to achieve profits of 3.2 billion yuan and 4.1 billion yuan for 2024 and 2025, respectively, corresponding to price-earnings ratios of 17 and 14 times [6].