Incident: The company determined September 27, 2024 as the initial grant date to award 1.407 million shares to 187 incentive recipients at a grant price of 32.77 yuan/share, demonstrating the company's confidence. Additionally, the company published its 2024 semi-annual report. 2024H1 achieved revenue of 3.148 billion yuan, -17.47% year over year; net profit loss to mother 0.024 billion yuan, or -103.22% year over year. Among them, 24Q2 now has revenue of 2.022 billion yuan, -3.50% year-on-year, +79.51% month-on-month; realized net profit of 0.005 billion yuan, or -98.77% year-on-year, and +117.32% month-on-month.

Q2 turned a loss into a profit, and the results were in line with expectations.

24H1's inverter shipments continue to increase, and emerging regions in Asia, Africa, and Latin America are gradually increasing. As of the first half of 2024, the company's products have been sold in batches to many countries and regions around the world, including Europe, America, Asia, Africa, and Latin America. 24H1 sold about 0.2785 million inverters, of which 0.2559 million grid-connected inverters were sold, accounting for about 91.89%; energy storage inverters sold about 0.0226 million units, accounting for 8.11%. According to the shipping area, the company's overseas inverter sales volume is about 0.1552 million units, accounting for about 55.71%; domestic inverter sales are about 0.1233 million units, accounting for about 44.29%; the company's energy storage battery sales are about 131.86 MWh, and domestic household distributed system sales are about 404.43 MW. From a profitability perspective, due to overseas inventory factors, revenue from high-margin household storage products declined. 24H1 gross margin was 22.76%, or 12.79pct year-on-year.

24H1's household products continue to innovate, and breakthroughs have been made in conversion efficiency and power levels. As of 24H1, the company has continued to be deeply involved in the field of household photovoltaics. In the first half of the year, the latest SDT G3 series photovoltaic inverters of 33 kW, 36 kW, and 40 kW were released, expanding the power range of SDT series products to 40 kW. The power density of the product was greatly improved. The maximum efficiency reached 98.7%, effectively increasing the power generation capacity. The AC side supports aluminum wire access, which greatly reduces system costs. Furthermore, new breakthroughs have been made in MPPT, string current, safety protection, scene adaptability, and component compatibility.

Investment advice: Considering the year-on-year decline in the company's 24H1 net revenue and profit forecast, the company's net profit for 24E-26E is estimated to be 0.437/0.903/1.144 billion yuan (original forecast 1.662/2.659/3.706 billion yuan), YoY -48.8%/+106.8%/+26.8%, and EPS 1.80/3.72/4.72 yuan respectively, maintaining the “buy” rating.