Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a strong performance in Q2, with revenue and net profit growth in line with expectations. The company achieved a revenue of 5.535 billion yuan in the first half of 2025, representing a year-over-year increase of 16.58%, and a net profit of 1.522 billion yuan, up 23.18% year-over-year [4] - The report highlights the rapid growth in the industrial and commercial energy storage market, with a significant increase in sales of energy storage inverters and battery packs. The company sold 315,600 energy storage inverters in the first half of 2025, a year-over-year increase of 47.41% [5] - The report also notes a slight decline in the sales of string inverters and micro inverters, while the gross margin for heat exchangers has improved [6] Financial Summary - The company’s financial performance shows a projected revenue increase from 7.48 billion yuan in 2023 to 18.799 billion yuan in 2027, with a compound annual growth rate (CAGR) of approximately 25.6% [8] - The net profit is expected to grow from 1.791 billion yuan in 2023 to 5.013 billion yuan in 2027, with a year-over-year growth rate of 18.0% to 17.9% [8] - The gross margin is projected to decline slightly from 39.8% in 2023 to 36.8% in 2027, while the net profit margin is expected to stabilize around 26.7% [11]

Core Viewpoint - Ningbo Deye Technology Co., Ltd. reported a significant increase in revenue and net profit for the first half of 2025, driven by strong demand in the photovoltaic and energy storage sectors, while also announcing a cash dividend distribution plan for shareholders [1][2][3]. Financial Performance - The company's operating revenue for the first half of 2025 reached RMB 5,535,465,365.91, a 16.58% increase compared to RMB 4,748,194,445.57 in the same period last year [2][3]. - The total profit amounted to RMB 1,736,648,078.55, reflecting a 23.14% increase from RMB 1,410,310,331.13 year-on-year [2][3]. - Net profit attributable to shareholders was RMB 1,522,164,569.91, up 23.18% from RMB 1,235,683,828.04 in the previous year [2][3]. - The company plans to distribute a cash dividend of RMB 1.108 per share, totaling approximately RMB 1,000,015,340.47, which represents 65.70% of the net profit for the period [1][2]. Industry Overview - The company operates in the electrical machinery and equipment manufacturing industry, focusing on the photovoltaic sector and home appliances, including dehumidifiers [3][4]. - The global inverter market is projected to reach RMB 66.3 billion by 2025, with an expected shipment volume of 570 GW, driven by increasing adoption of renewable energy and supportive policies [4][5]. - The energy storage market is anticipated to become a second growth driver, with significant demand emerging from commercial and industrial sectors due to policy support and peak-valley price differences [4][5]. Product Development and Market Strategy - The company has developed a comprehensive product matrix covering energy storage, string, and micro-inverters, positioning itself as a leader in the inverter market [3][4]. - New product launches include off-grid storage inverters and integrated solutions that enhance flexibility and reduce costs by 30% [5][6]. - The company actively participates in international exhibitions and regional roadshows to promote its brand and products, reaching over 110 countries and regions [5][6]. Operational Highlights - The company sold a total of 763,800 inverters in the first half of 2025, with household storage inverters accounting for 272,700 units and commercial storage for 42,900 units, marking an 85.80% increase year-on-year [5][6]. - The company’s cash flow from operating activities was RMB 1,515,942,460.28, a 14.63% increase from the previous year [2][3]. - The total assets of the company reached RMB 18,568,024,806.26, a 22.85% increase compared to the previous year [2][3].