Yuneng Technology (688348) 长江证券·2024-05-16 07:32Investment Rating - The report maintains a "Buy" rating for the company [9][10]. Core Views - The company reported Q1 2024 revenue of 428 million yuan, a year-on-year decrease of 2% and a quarter-on-quarter decrease of 5%. The net profit attributable to the parent company was 40 million yuan, down 66% year-on-year but stable quarter-on-quarter [6][9]. - The micro-inverter business is expected to see a slight increase in sales in Q1, driven by recovering demand in Europe and Latin America, while the North American market remains relatively subdued. The price of micro-inverters is stable, and the gross margin is expected to remain at a good level [7][8]. - The company anticipates an upward demand trend in Q2, with expected quarter-on-quarter growth in shipments and inventory levels returning to reasonable levels by the end of Q2. The company is also actively expanding its energy storage business, with expectations for significant revenue growth in commercial and industrial storage in 2024 [8][9]. Financial Summary - For Q1 2024, the company had an expense ratio of 19.4%, with a financial expense ratio of 1.1%, primarily due to exchange rate fluctuations leading to some foreign exchange losses [8]. - The company expects to achieve a profit of 370 million yuan in 2024, corresponding to a PE ratio of 21 times [9].