Deye(605117) 东方证券·2024-09-27 12:16Investment Rating - The report maintains a "Buy" rating for the company with a target price of 100.04 CNY, based on a 22x PE ratio for 2024 [2][4][8]. Core Views - The company is actively expanding its global footprint by participating in major renewable energy exhibitions in China and India, which are expected to enhance brand recognition and optimize global sales channels [1]. - The company's mid-year performance shows a solid foundation, with significant improvement in Q2 2023, where revenue reached 2.86 billion CNY, a year-on-year increase of 2.0% and a quarter-on-quarter increase of 52.1% [1]. - The economic viability of solar storage is driving demand in emerging markets, particularly in developing countries where electricity needs are rising due to various challenges [1]. Summary by Sections Financial Performance - For the first half of 2023, the company reported a revenue of 4.75 billion CNY, a year-on-year decrease of 3.0%, and a net profit of 1.24 billion CNY, down 2.2% year-on-year. However, Q2 showed a strong recovery with revenue of 2.86 billion CNY and net profit of 800 million CNY, marking increases of 2.0% and 19.0% year-on-year, respectively [1][6]. - The forecast for net profit from 2024 to 2026 is adjusted to 2.93 billion CNY, 3.79 billion CNY, and 4.50 billion CNY, with corresponding earnings per share of 4.55 CNY, 5.88 CNY, and 6.98 CNY [2][6]. Market Dynamics - The report highlights the increasing electricity demand in developing countries, particularly in Pakistan and India, where energy shortages are prompting a shift towards solar storage solutions [1]. - Geopolitical conflicts, such as the situation in Ukraine, are also creating a surge in demand for home storage solutions due to significant drops in national power generation capabilities [1]. Valuation and Comparables - The company is compared to peers in the renewable energy sector, with a target price derived from a 22x PE ratio based on comparable companies, indicating a favorable valuation relative to its market position [2][8][9].