Deye(SH:605117) ZHONGTAI SECURITIES·2024-04-26 07:02Investment Rating - The report provides a positive investment rating for the company, indicating a favorable outlook for future performance [4]. Core Insights - The company is projected to experience significant revenue growth, with estimates of $7.48 billion in 2023, increasing to $17.04 billion by 2026, representing a compound annual growth rate (CAGR) of approximately 42.9% from 2022 to 2023 and 19.7% from 2025 to 2026 [4][7]. - The earnings per share (EPS) is expected to rise from $4.16 in 2023 to $8.19 in 2026, reflecting a strong growth trajectory [7]. - The price-to-earnings (P/E) ratio is forecasted to decrease from 21.5 in 2023 to 10.6 by 2026, suggesting that the stock may become more attractive to investors over time [7]. Financial Summary - Revenue projections for the company are as follows: - 2023: $7.48 billion - 2024: $11.29 billion - 2025: $14.24 billion - 2026: $17.04 billion - Year-over-year growth rates are expected to be 25.6% in 2023, 50.9% in 2024, 26.2% in 2025, and 19.7% in 2026 [4][7]. - The company's net income is projected to grow significantly, with estimates of $1.79 billion in 2023 and reaching $3.52 billion by 2026, indicating a robust profit margin [7]. - The return on equity (ROE) is expected to remain strong, with estimates of 34.2% in 2023 and declining to 30.2% by 2026, reflecting efficient use of equity capital [7].