Core Viewpoint - The company's 2024 and Q1 2025 performance fell short of expectations, primarily due to a decline in micro-inverter sales and slow growth in the energy storage business, alongside rising operating expenses [1][2]. Group 1: 2024 Performance Summary - The company reported a revenue of 1.993 billion yuan in 2024, a year-on-year decrease of 2%, and a net profit attributable to shareholders of 344 million yuan, down 33% year-on-year [1]. - In Q4 2024, the company achieved a revenue of 727 million yuan, an increase of 98% year-on-year and 103% quarter-on-quarter, with a net profit of 99 million yuan, up 44% year-on-year and 70% quarter-on-quarter [1]. - For Q1 2025, the company recorded a revenue of 336 million yuan, a year-on-year increase of 1.5% but a quarter-on-quarter decline of 54%, with a net loss of 10.36 million yuan, down 115% year-on-year and 111% quarter-on-quarter [1]. Group 2: Business Trends - Micro-inverter sales faced pressure in 2024, with revenue of 1.227 billion yuan, a year-on-year decrease of 13%, and sales volume of approximately 986,200 units, down 25% year-on-year, largely due to a weak European market [2]. - Despite the decline in sales volume, the micro-inverter's gross margin remained stable at 53.54%, an increase of 5.31 percentage points year-on-year [2]. - The energy storage business generated revenue of 312 million yuan in 2024, remaining flat year-on-year, with a gross margin of 18.92%, up 2.32 percentage points year-on-year [2]. - The company is investing in talent, marketing, and R&D to build a second growth curve in energy storage, leading to a significant increase in operating expenses, which reached 28.14% in 2024, up 9 percentage points year-on-year, and 40.24% in Q1 2025 [2]. Group 3: Future Outlook - The company is extending into high-power scenarios, with expectations for a 30% year-on-year increase in micro-inverter shipments in 2025, supported by the launch of new products [3]. - The company introduced the world's first 5000W micro-inverter and plans to release a second-generation balcony micro-storage product in the second half of 2025 [3]. - The company anticipates significant revenue growth from its energy storage product lines, with a potential doubling of revenue, while also expecting a slight decrease in operating expense ratio in 2025 [3]. Group 4: Profit Forecast and Valuation - Due to high expenses in Q1 2025 and the lack of volume in large storage orders, the company has lowered its 2025 net profit forecast by 38% to 475 million yuan and introduced a 2026 profit forecast of 632 million yuan [4]. - The company maintains an outperform rating while reducing the target price by 32.3% to 134 yuan, corresponding to 35 and 26 times the price-to-earnings ratio for 2025 and 2026, respectively, indicating a potential upside of 38.1% from the current stock price [4].