Deye(SH:605117) Haitong Securities·2024-04-07 16:00Investment Rating - The investment rating for the company is "Outperform the Market" [2][5] Core Views - The company is transforming from a traditional electrical appliance manufacturer to a rising star in the inverter market, focusing on high-quality energy storage solutions while maintaining high gross profit margins [5][6] - The company's inverter revenue has rapidly increased, accounting for 66.4% of total revenue in 2022, with a year-on-year growth of 173.2% in the first half of 2023 [5][6] - The company has a clear differentiation strategy in emerging markets, with significant sales growth in regions like South Africa and Brazil, driven by policies encouraging solar project development [5][6] Summary by Sections Investment Highlights - The company has seen a significant increase in inverter sales, with a year-on-year growth of 67.9% in units sold, reaching 661,000 units in the first half of 2023 [5] - The gross margin for the inverter business increased by 11 percentage points year-on-year to 48.2% in 2022, primarily due to a higher proportion of energy storage inverters sold [5][6] Market Expansion - The company reported a 173.6% year-on-year increase in export revenue in 2022, with a gross margin of 46.0% [5] - The inverter products are mainly sold to emerging markets such as Brazil, South Africa, and the USA, with a focus on low-power off-grid solutions suitable for developing countries [5][6] Financial Forecasts - The company is expected to achieve net profits of 1.875 billion, 2.597 billion, and 3.279 billion yuan for the years 2023, 2024, and 2025, respectively, representing year-on-year growth rates of 23.6%, 38.5%, and 26.2% [6][10] - Revenue projections for the inverter business are 4.4 billion, 6.3 billion, and 8.2 billion yuan for 2023, 2024, and 2025, with corresponding gross margins of 53.0%, 52.3%, and 50.9% [7][8]