Deye(SH:605117) Tai Ping Yang·2024-05-12 07:05Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative increase of over 15% compared to the CSI 300 index in the next six months [1][8]. Core Views - The company's performance shows significant recovery, with the energy storage and inverter businesses expected to accelerate growth [3][4]. - The company reported a revenue of 7.48 billion in 2023, a year-on-year increase of 25.59%, and a net profit of 1.79 billion, up 18.03% year-on-year [2][5]. - The inverter revenue reached 4.43 billion in 2023, growing by 11.95% year-on-year, with a gross margin of 52.33% [2][5]. - The energy storage battery pack revenue surged to 0.884 billion, a remarkable increase of 965.43% year-on-year, indicating strong growth potential in this segment [2][5]. Financial Performance Summary - In Q1 2024, the company achieved a revenue of 1.88 billion, a decrease of 9.64% year-on-year, and a net profit of 0.433 billion, down 26.48% year-on-year [2][5]. - The gross margin for Q1 2024 was 36.33%, reflecting a decline of 6.73 percentage points year-on-year [2][5]. - The company is expected to see revenues of 10.91 billion, 14.11 billion, and 18.15 billion in 2024, 2025, and 2026 respectively, with growth rates of 45.85%, 29.31%, and 28.65% [5][6]. - The projected net profit for 2024, 2025, and 2026 is 2.38 billion, 2.88 billion, and 3.56 billion respectively, with growth rates of 32.75%, 21.13%, and 23.59% [5][6]. Market Position and Strategy - The company is positioned as a leader in the energy storage and inverter market, with a comprehensive product matrix that includes energy storage, string, and micro-inverter products [6][7]. - The report highlights the company's ongoing investment in R&D to enhance product competitiveness and reduce production costs [2][5]. - The company is actively expanding its market presence in emerging markets, which is expected to drive further growth in its inverter business [2][3].