Core highlights:

1. We believe that the company's 24Q1 performance has bottomed out and is connected to the grid, and the annual performance can be expected to increase month-on-month; 2. European inventories are bottoming out compounded by a cycle of interest rate cuts, and the high-profit household storage business is growing imminent.

Company advantages:

1. It has an advantage in the European high-quality market, and the explosion of emerging markets brings incremental opportunities; 2. Deep R&D accumulation and high brand reputation;

3. Performance flexibility is high, and profitability will increase significantly as shipments grow; 4. Inverters are asset-light, and gross margin is relatively stable.

Risk warning: New PV installations fall short of expectations; industry inventories fall short of expectations; industry competition intensifies.