Yuneng Technology (SH:688348) Soochow Securities·2024-02-25 16:00Investment Rating - The investment rating for the company is upgraded to "Accumulate" [1][14]. Core Views - The company is expected to maintain stable gross margins around 40% in Q4 2023, with micro-inverter shipments projected to grow by over 30% in 2024 after a slight decline in Q1 2024 due to inventory adjustments [1][2]. - The company reported a net profit of 208 million yuan for 2023, a decrease of 42% year-on-year, with a significant drop in Q4 net profit attributed to credit and asset impairment losses [12][14]. - The company anticipates a strong recovery in its industrial storage segment, with expected revenue growth of over 650% in Q4 2023 and potential doubling in 2024 [13][14]. Financial Summary - The company’s operating cash flow is projected to improve from a negative 217 million yuan in 2023 to a negative 203 million yuan in 2024 [7]. - The forecasted net profit for 2023-2025 is adjusted to 208 million, 339 million, and 476 million yuan respectively, reflecting a year-on-year decline of 42%, followed by a recovery in subsequent years [14][23]. - The company's revenue is expected to grow from 1.42 billion yuan in 2023 to 1.95 billion yuan in 2024, with a year-on-year growth rate of 36.96% [23].