Deye(605117) 天风证券·2025-01-08 14:05Investment Rating - The report upgrades the investment rating of the company to "Buy" [3][5]. Core Insights - The company is well-positioned to meet the growing demand for distributed solar storage systems in the Asia, Africa, and Latin America (AFLA) markets, driven by weak grid infrastructure and the need for reliable electricity supply [2][21]. - The company's product design is superior to its peers, with a focus on low-cost, expandable low-voltage systems and off-grid capabilities, including compatibility with diesel generators and shorter off-grid switching times [2][21]. - The report anticipates sustained growth in solar and storage demand in the AFLA markets, supported by the company's established sales channels and its ability to identify underlying market needs [3][23]. Industry Overview - The report highlights that the AFLA regions are taking over from Europe in terms of growing demand for household storage solutions, as European household storage demand is expected to decline [14][17]. - In Europe, while household storage is slowing down, commercial and large-scale storage demand is projected to grow significantly, with expectations for large-scale installations to exceed 10 GWh in 2024 [14][15]. - The report notes that funding support from developed countries and decreasing solar investment costs are expected to drive demand in the AFLA regions, particularly in countries like India, where solar project costs have dropped significantly [17][18][19]. Company Analysis - The company has demonstrated a strong ability to adapt its products to meet the specific needs of the AFLA markets, with all new products compatible with diesel generators and lead-acid batteries, and offering high scalability [2][21]. - The report provides updated revenue forecasts for the company, projecting revenues of 114 billion, 162 billion, and 210 billion yuan for 2024, 2025, and 2026 respectively, reflecting a significant upward revision from previous estimates [3][23]. - The company's net profit is also expected to rise significantly, with projections of 30.4 billion, 41.1 billion, and 52.9 billion yuan for the same years, indicating year-over-year growth rates of 69.47%, 35.32%, and 28.77% respectively [3][23].