Deye(605117) 甬兴证券·2025-02-14 08:36Investment Rating - The report gives a "Buy" rating for the company, indicating a positive outlook for investment [4][6]. Core Views - The company has established a product matrix consisting of three main product series: heat exchangers, circuit control, and environmental appliances. The inverter products, including storage, micro-grid, and string inverters, have seen significant growth since 2016, with a notable increase in sales volume [1][25]. - The global household energy storage market is rapidly growing, benefiting the company's storage inverter sales, which have increased significantly from 2.62 million units in the first half of 2021 to 214,100 units in the first half of 2024 [1][42]. - The integration of energy storage battery products with storage inverters has opened new market opportunities, with revenue from storage battery products reaching approximately 884 million yuan in 2023, a year-on-year increase of 965.43% [2][50]. Summary by Sections 1. Traditional Business Development - The company has a stable development in traditional businesses, with inverters contributing significantly to performance elasticity. In 2023, the company achieved total revenue of 7.48 billion yuan, a year-on-year increase of 25.6% [16][18]. - The inverter products accounted for 66.44% of the company's revenue in 2022, with a remarkable growth of 230.41% compared to 2021 [18][23]. 2. Rapid Growth in Household Storage Market - The household storage market is experiencing rapid growth, driving high demand for storage inverters. The global household storage market is expected to exceed 15GW/34GWh by the end of 2023, with significant contributions from countries like Germany, Italy, Japan, the USA, and Australia [36][39]. - The company’s storage inverters have seen a substantial increase in shipment volume, with 214,100 units sold in the first half of 2024, despite a year-on-year decline of 28.56% in storage inverters [1][42]. 3. Emerging Market Demand - The demand for solar storage in emerging markets is robust, particularly in regions like South Africa and Pakistan, which are experiencing significant growth in solar installations due to supportive policies and government funding [3][54]. - In 2023, the company’s photovoltaic products had a revenue distribution of 32.84% in South Africa, 8.52% in Brazil, 7.20% in Hong Kong, 5.60% in Germany, and 4.04% in India, indicating a strong international presence [66]. 4. Profit Forecast and Investment Recommendations - The company is expected to see revenue growth from 10.31 billion yuan in 2024 to 15.38 billion yuan in 2026, with corresponding net profits increasing from 3.03 billion yuan to 4.72 billion yuan during the same period [4][11]. - The report anticipates a price-to-earnings ratio of 19, 15, and 12 times for the years 2024, 2025, and 2026, respectively, reflecting a favorable valuation for investors [4][11].