Pylon Technologies(SH:688063) KAIYUAN SECURITIES·2024-04-13 16:00Investment Rating - The investment rating for the company is upgraded to "Outperform" [2][5]. Core Views - The report indicates that the industry destocking has led to a decline in performance, but the company's comprehensive strength ensures its long-term competitiveness [1][5]. - The company's revenue and profit have both decreased year-on-year due to industry destocking, with 2023 revenue at 3.299 billion yuan, down 45.1%, and net profit at 516 million yuan, down 59.5% [5][7]. - The report anticipates a recovery in shipments starting in the second half of 2024 as inventory levels normalize [5][6]. Financial Summary - In 2023, the company achieved a revenue of 3.299 billion yuan, a decrease of 45.1% year-on-year, and a net profit of 516 million yuan, down 59.5% [5][7]. - The gross margin for 2023 was 32.1%, a decline of 2.5 percentage points year-on-year [7]. - The company expects net profits for 2024 and 2025 to be 435 million yuan and 637 million yuan, respectively, with an EPS of 2.48 yuan for 2024 [5][7]. - The total assets of the company are projected to reach 15.765 billion yuan by 2024, with total liabilities of 5.799 billion yuan [8]. Product and Market Position - The company generated 3.25 billion yuan in revenue from energy storage systems in 2023, down 45.2% year-on-year, with a gross margin of 31.65% [6]. - The company sold 1,874.53 MWh of soft-pack batteries in 2023, a decrease of 46.92% year-on-year, with an inventory of 605.81 MWh at the end of the year [6]. - The company is actively expanding its commercial energy storage product sales, launching a 200 kWh integrated energy storage cabinet product in 2023 [6].