Deye(605117) 民生证券·2025-01-21 23:51Investment Rating - The report maintains a "Recommended" rating for the company, benefiting from high growth in solar storage demand in emerging markets and its first-mover advantage in Asia, Africa, and Latin America, as well as growth in the European and American markets [4][95]. Core Insights - The company has evolved from a home appliance manufacturer to a key player in the inverter business, with steady revenue and profit growth driven by an increasing share of inverter business, which has significantly improved gross margins [1][13]. - Emerging markets are experiencing high growth in solar storage demand, while the European market is expected to recover as inventory depletion comes to an end [2][20]. - The company has a comprehensive product matrix that includes storage, string, and micro-inverters, focusing on differentiated products to avoid competition in saturated markets [2][38]. - Strong cost control and manufacturing advantages have led to superior profitability compared to peers, with a focus on domestic production of key components [2][53]. Summary by Sections 1. Company Overview - The company started in 2000, initially focusing on home appliances and later expanding into the inverter sector, establishing a strong presence in the solar inverter market [11][13]. 2. Market Demand - High growth in solar storage demand is driven by economic improvements and subsidies in countries like India and Pakistan, while Southeast Asia and South Africa are also seeing increased demand [26][31]. - The European market is expected to recover as inventory depletion ends, with significant growth in large-scale and commercial storage [33][35]. 3. Product Advantages - The company offers a complete range of storage, string, and micro-inverter products, with a focus on high-performance storage inverters that cater to both residential and commercial markets [38][41]. - The storage inverters are designed for low voltage, enhancing safety and usability for off-grid applications, while string inverters are optimized for high power and efficiency [41][46]. 4. Cost Control - The company has a strong cost control capability, achieving a gross margin of 52.33% in its inverter business, which is among the highest in the industry [53][60]. - The focus on domestic production of key components has helped mitigate supply chain risks and maintain cost advantages [53][62]. 5. Global Expansion - The company has established a significant presence in emerging markets such as Africa and Latin America, leveraging its early entry and product advantages [71][79]. - In the European and American markets, the company is gradually increasing its footprint, particularly in response to rebuilding needs in Ukraine and growing demand for storage solutions [82][84]. 6. Financial Projections - Revenue projections for 2024-2026 are estimated at 107.77 billion, 157.09 billion, and 215.08 billion yuan, with corresponding net profits of 30.24 billion, 40.31 billion, and 52.32 billion yuan [4][95].