Yuneng Technology (SH:688348) Changjiang Securities·2025-05-20 02:43Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - The company reported a revenue of 1.771 billion yuan in 2024, representing a year-on-year growth of 25%. However, the net profit attributable to shareholders was 140 million yuan, a decrease of 36% year-on-year. In Q4 2024, revenue dropped to 238 million yuan, down 47% year-on-year and 63% quarter-on-quarter, with a net profit of -9 million yuan, reflecting a 124% year-on-year decline [2][4]. - For Q1 2025, the company achieved a revenue of 191 million yuan, a decline of 55% year-on-year, with a net profit of 29 million yuan, down 28% year-on-year [2][4]. Summary by Sections Financial Performance - In 2024, the company sold 960,000 units of micro-inverters and energy communication products, a decrease of 2% year-on-year. The gross margin for these products was 38.4%, maintaining a good level. The inventory at the end of 2024 was 1.09 million units, a reduction of 21% compared to the previous year [10]. - The company's industrial storage business generated a revenue of 540 million yuan in 2024, with a gross margin of 13.3%, showing significant growth. The revenue from smart control circuit breakers was 190 million yuan, up 15% year-on-year, with a gross margin of 45.8%, an increase of 9.1 percentage points [10]. - For Q1 2025, the company expects a decline in micro-inverter sales year-on-year, but a relatively stable performance quarter-on-quarter, primarily due to subdued grid connection demand in the European market. The gross margin for micro-inverters is expected to improve [10]. Market Outlook - The demand for micro-inverters is expected to stabilize, with a potential increase in shipments in Q2 2025, supported by recent power outages in Southern Europe that may boost demand. The industrial storage business is anticipated to develop steadily after last year's explosive growth, with efforts to expand into overseas markets likely to enhance profitability [10]. - The company is projected to achieve a profit of over 300 million yuan in 2025 [10].