Deye(605117)2025-05-14 13:02Investment Rating - The report maintains a "Recommended" rating for the company, indicating an expectation to outperform the benchmark index by 10%-20% over the next six months [20]. Core Insights - The company achieved a total revenue of 112.06 billion yuan in 2024, representing a year-on-year growth of 49.82%. The net profit attributable to shareholders was 29.60 billion yuan, with a year-on-year increase of 65.29% [7][8]. - The company is experiencing significant growth driven by the optimization of product structure and the expansion into new markets, particularly in the renewable energy sector [7][8]. - The chairman proposed a share buyback plan of 100 million to 200 million yuan to be used for employee stock ownership plans, reflecting management's confidence in the company's future [7][8]. Financial Performance Summary - 2024 Financials: - Total Revenue: 112.06 billion yuan, up 49.82% YoY - Net Profit: 29.60 billion yuan, up 65.29% YoY - Gross Margin: 38.76%, down 1.65 percentage points YoY - Net Margin: 26.42%, up 2.47 percentage points YoY [3][7]. - 2025 Q1 Performance: - Revenue: 25.66 billion yuan, up 36.24% YoY - Net Profit: 7.06 billion yuan, up 62.98% YoY - Gross Margin: 37.21%, up 0.88 percentage points YoY [7]. - Revenue Breakdown by Business: - Heat Exchangers: 19.55 billion yuan, up 45.39% YoY - Dehumidifiers: 9.69 billion yuan, up 37.69% YoY - Inverter Business: 55.56 billion yuan, up 25.44% YoY - Energy Storage Battery Pack: 24.51 billion yuan, up 177.19% YoY [7]. Market Position and Strategy - The company has successfully expanded its market presence in emerging markets, with over half of its revenue from photovoltaic products coming from regions such as Asia, South America, and Africa [7]. - Continuous optimization of product structure and cost control has strengthened the company's market competitiveness, alongside efforts to enhance domestic and international sales networks [7][8]. Future Projections - The company is projected to achieve net profits of 40.02 billion yuan, 50.49 billion yuan, and 61.40 billion yuan for the years 2024, 2025, and 2026 respectively, with corresponding price-to-earnings ratios of 15, 12, and 10 [3][7]. - The target price for 2025 is set at 111.51 yuan, based on a valuation of 18 times the expected earnings [7].