Deye(SH:605117) ZHONGTAI SECURITIES·2025-09-14 12:42Investment Rating - The investment rating for the company is "Buy" (maintained) [3][10] Core Views - The company reported a strong performance in Q1 and Q2 of 2025, with revenue growth driven by market and product expansion [4][6] - The company is expected to achieve significant revenue and profit growth in the coming years, with projected revenues of 7,480 million in 2023, increasing to 19,810 million by 2027 [3] - The company is focusing on expanding its market presence in Europe, Southeast Asia, and the Middle East, which is expected to contribute to its growth [6] Summary by Sections Financial Performance - In H1 2025, the company achieved revenue of 5.535 billion, a year-on-year increase of 16.6%, and a net profit of 1.522 billion, up 23.2% year-on-year [4] - Q2 2025 revenue was 2.969 billion, a 3.7% increase year-on-year and a 15.7% increase quarter-on-quarter [4] - The gross margin for H1 2025 was 37.5%, slightly up by 0.3 percentage points year-on-year [4] Revenue Breakdown - The inverter segment generated revenue of 1.4 billion in Q2 2025, a 3% increase year-on-year and a 13% increase quarter-on-quarter [6] - The battery pack segment saw revenue of 740 million, a 56% increase year-on-year [6] - The home appliance segment reported a revenue decline of 16% year-on-year, with a gross margin of 13.2% [6] Market Expansion - The company is launching new energy storage products tailored to different markets, enhancing its competitive edge [6] - Demand in Europe is recovering, and new markets in Southeast Asia and the Middle East are showing significant growth potential [6] - The company plans to introduce new off-grid energy storage solutions to meet the needs of underdeveloped regions [6] Profit Forecast and Valuation - The company is expected to achieve net profits of 3.594 billion, 4.404 billion, and 5.096 billion in 2025, 2026, and 2027 respectively, with a year-on-year growth of 21%, 23%, and 16% [3][6] - The current stock price corresponds to a P/E ratio of 18, 15, and 13 for the years 2025, 2026, and 2027 respectively [6]