Deye(SH:605117)2025-11-03 15:48Summary of the Conference Call for 德业股份 Company Overview - Company: 德业股份 (DeYee Co., Ltd.) - Industry: Inverter and energy storage solutions Key Financial Performance - Revenue: In the first three quarters of 2025, revenue reached 8.846 billion RMB, a year-on-year increase of 10.36% [4] - Net Profit: Net profit was 2.347 billion RMB, up 6.53% year-on-year [4] - Inverter Business Revenue: Revenue from inverter business was 4.585 billion RMB, a 9.76% increase [4] - Energy Storage Inverter Revenue: Revenue from energy storage inverters was 3.694 billion RMB, a 14.47% increase [4] - Energy Storage Battery Pack Revenue: Revenue from energy storage battery packs was 2.423 billion RMB, a significant increase of 57.88% [2] Business Segments and Growth - Inverter Product Breakdown: - Household storage contributed 2.598 billion RMB - Commercial storage contributed 1.096 billion RMB - String inverters revenue was 699 million RMB, up 10.75% - Micro-inverter revenue decreased by 55.53% to 129 million RMB [2][4] - Market Share in Australia: Currently at approximately 5%, with a target to increase to 15% by 2026. Expected sales in Australia for 2025 are projected between 250 million to 300 million RMB, and 1 billion to 1.5 billion RMB for 2026 [11][12] - AIDC Product Development: Focus on SST (Solid State Transformer) and PSU (Power Supply Unit) products, with SSD entering solid state transformer phase expected to complete in one year [13] - AI Intelligent Scheduling System: Used for VPP (Virtual Power Plant) management, currently applied in household storage market (90%) and commercial storage market (10%). Future monetization is possible to enhance customer energy management efficiency [14] Market Expansion and Future Outlook - Indonesia Market: Established presence over three to four years, leading brand with partnerships for a million photovoltaic plan. Large off-grid photovoltaic systems expected to roll out in 2026 [20][21] - Ukraine Market: Monthly growth rate of 70%-80%, with significant demand expected post-conflict [16] - Global Demand: Anticipated 20%-30% growth in household storage business, particularly in Europe, Southeast Asia, and the Middle East [19] - US Market Strategy: Collaborating with SolarEdge for inverter promotion and battery sales. Positive growth expected in 2026 due to demand and compliance with the "Great American Law" [22] Profitability and Cost Management - Gross Margin: Overall gross margin for the third quarter was 39%, with improvements due to increased shipments of energy storage inverters and maintaining a gross margin of around 60% for commercial storage [5][18] - Sales Expense Control: Sales expenses have remained stable despite rapid business expansion, with a decrease in sales expense ratio [33] Emerging Markets and Competitive Landscape - Emerging Markets: High market share in Southeast Asia, Middle East, and Africa, with annual growth rates of 30%-40% in regions like the Philippines and Vietnam [35] - European Market Demand: Focused on arbitrage and ancillary services, with strong growth expected [28] - Battery Supply Chain: Long-term contracts with battery suppliers, maintaining inventory levels and managing price increases effectively [30] Conclusion 德业股份 is positioned for significant growth in various markets, with a strong focus on innovation in energy storage and inverter technology. The company is actively expanding its market presence in Australia, Indonesia, and the US while maintaining profitability through effective cost management and strategic partnerships.