Deye(SH:605117) GF SECURITIES·2024-04-28 01:32Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 95.36 CNY per share based on a 20x PE valuation for 2024 [3][8]. Core Insights - The company reported its 2023 annual results and Q1 2024 results, which met expectations. In 2023, it achieved revenue of 7.48 billion CNY, a year-on-year increase of 25.59%, and a net profit attributable to shareholders of 1.79 billion CNY, up 18.03% year-on-year. The gross margin was 40.41%, an increase of 2.38 percentage points year-on-year [2][8]. - The company's inverter business has expanded significantly in overseas markets, with a total of 889,000 units sold in 2023, including 408,700 energy storage inverters. The gross margin for inverters reached 52.33%, an increase of 4.15 percentage points year-on-year [2][8]. - The energy storage battery business saw remarkable growth, with revenue of 884 million CNY in 2023, a staggering increase of 965.43% year-on-year, accounting for 11.82% of total revenue [2][8]. Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 7,480 million CNY, with a growth rate of 25.6%. The net profit attributable to shareholders was 1,791 million CNY, reflecting an 18.0% growth. The EPS for 2023 was 4.17 CNY [6][16]. - For Q1 2024, the company reported a revenue of 1,884 million CNY, a decrease of 9.64% year-on-year, and a net profit of 433 million CNY, down 26.48% year-on-year [2][6]. Business Segments - Inverter Business: Revenue from inverters in 2023 was 4.43 billion CNY, with a gross margin of 52.38%. The company expects revenue to grow to 4.62 billion CNY in 2024 [9][10]. - Energy Storage Battery: Revenue from energy storage batteries is projected to reach 3 billion CNY in 2024, with a gross margin of around 35% [7][9]. - Heat Exchanger Series: Revenue for heat exchangers in 2023 was 1.34 billion CNY, with expectations of growth to 1.47 billion CNY in 2024 [10]. - Dehumidifier Series: Revenue from dehumidifiers was 704 million CNY in 2023, with projections of 879 million CNY in 2024 [10]. Earnings Forecast - The company forecasts EPS of 4.77 CNY for 2024, 6.27 CNY for 2025, and 7.56 CNY for 2026, indicating a positive growth trajectory [8][16].