Deye(SH:605117) Great Wall Securities·2024-05-08 07:02Investment Rating - The report maintains a "Buy" rating for the company [1][6]. Core Views - The company is expected to see a recovery in its inverter and battery segments, with a significant increase in revenue and profit projected for the coming years [1][6]. - The company reported a strong performance in Q1 2024, with revenue of 1.884 billion and a net profit of 433 million, indicating a robust recovery from previous downturns [1][2]. - The report highlights the company's strategic expansion into emerging markets, which has mitigated the impact of inventory challenges faced in the inverter industry [2][6]. Financial Summary - Revenue is projected to grow from 10.521 billion in 2024 to 16.255 billion by 2026, with a compound annual growth rate (CAGR) of approximately 23.5% [1][6]. - Net profit is expected to increase from 2.281 billion in 2024 to 3.796 billion by 2026, reflecting a strong growth trajectory [1][6]. - The company's EPS is forecasted to rise from 5.30 in 2024 to 8.83 in 2026, indicating improved profitability [1][6]. Product Performance - The company shipped 889,000 inverters in 2023, with a notable recovery in Q1 2024, where shipments reached 235,120 units [2][6]. - The storage battery segment achieved a revenue of 884 million in 2023, marking a substantial growth of 965.43% year-on-year [2][6]. - The traditional business segments, including dehumidifiers and heat exchangers, also showed positive growth, contributing to the overall revenue stability [2][6].