event: the company released the 2023 semi-annual report, 2023H1 realized operating income of 3.814 billion yuan, +163 year-on-year, and realized net profit of 0.741 billion yuan, +1256 year-on-year; Achieve net profit of 0.743 billion yuan after deducting non-return, +1451 year-on-year; Among them, 2023Q2 realized operating income of 2.095 billion yuan, +161 year-on-year, realizing net profit of 0.404 billion yuan, yoY, 794%, and realized net profit of 0.41 billion yuan, up 861% YoY.

comments:

the optical storage inverter business grew at a high speed year on year, driving the company's revenue to increase significantly: 2023H1, the company's inverter sales volume was about 419500 units, of which the grid-connected inverter sales volume was about 300100 units, + 82% year on year; Sales volume of energy storage inverters was about 119400 units, + 74% year on year. The company's overseas inverter sales of about 308200 units, accounting for about 73.47, domestic inverter sales of about 111300 units, accounting for about 26.53 percent. In addition, 2023H1, the company's energy storage battery sales of about 240.38MWh.

scale effect led to a significant decline in the cost rate: 2023H1, the company's gross margin of 35.55, yoy plus 6.38pct.

quarter by quarter, 2023Q2, the company's gross profit margin was 32.68, down 6.37pct from Q1, mainly due to intensified market competition. 2023H1, the company's sales expense rate of 5.76, YoY -4.4pct, management expense rate of 3.44, YoY -2.29pct, financial expense rate of -3.11, YoY -2.81pct, research and development expense rate of 5.61, YoY -4.91pct. Among them, the sharp decline in sales expense rate, management expense rate and research and development expense rate is mainly due to the dilution caused by the rapid growth of the company's revenue volume; the sharp decline in financial expense rate is mainly due to the increase in exchange income, 2023H1, the company's exchange income of 0.117 billion yuan.

actively introduce new products and attach importance to market development: 2023H1, the company has successively released a new UT series and GT series of grid-connected inverters that can be applied to ground power stations and industrial and commercial scenarios respectively. The UT series through advanced topology and innovative inverter control technology, the maximum conversion efficiency of up to 99.01. GT series has ultra-high power density, large tonnage integrated die casting reduces the volume by 20%, the weight by 15%, and the maximum conversion efficiency is as high as 99%. 2023H1, the company actively participated in large-scale photovoltaic product exhibitions SNEC2023 China, Munich, Germany, Spain, the Netherlands, France, Poland, Australia, Pakistan, Indonesia, the Philippines, South Korea, Japan, Vietnam and other countries to enhance market awareness.

profit forecast, valuation and rating: considering the inventory pressure of European households, we lowered the company's profit forecast. it is estimated that the company will realize a net profit of 14.92/20.12/2.536 billion yuan (down 1%/9%/13%) for 23-25 years, and the current stock price will correspond to 16/12/9 times PE for 23-25 years. Considering the long-term growth space of household storage, we continue to be optimistic about the company's long-term development and maintain a "buy" rating.

risk warning: photovoltaic installation, overseas market expansion is not as expected.