Sungrow Power Supply(SZ:300274) HTSC·2024-07-17 01:02Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 96.14, based on a 19x PE for 2024 [1][5]. Core Insights - The company has signed a significant energy storage contract in Saudi Arabia for 7.8GWh, with deliveries starting in 2024, indicating a positive trend in the energy storage industry [1][2]. - The company has also announced a substantial share buyback plan, reflecting confidence in its future growth [2]. - The report forecasts net profits for 2024, 2025, and 2026 at RMB 10.495 billion, RMB 11.561 billion, and RMB 12.685 billion, respectively [1][8]. Summary by Sections Market Developments - The company has secured multiple overseas contracts, including a 880MWh order in Latin America and a 760MWh project in Saudi Arabia, showcasing its expanding international presence [2]. - The U.S. energy storage market is experiencing rapid growth, with a 608% year-on-year increase in new installations in May 2024 [3]. - In Europe, the energy storage deployment is projected to reach 11GWh in 2024, indicating a strong market outlook [3]. Financial Performance - The company expects to achieve over 20GWh in energy storage shipments for the year, supported by stable growth in its photovoltaic inverter business, projected to reach 150-170GW in shipments [4]. - The report anticipates a high gross margin due to low price sensitivity in the U.S. and emerging markets, alongside a significant reduction in upstream costs [4]. - The company's revenue is projected to grow from RMB 40.257 billion in 2022 to RMB 90.889 billion in 2024, reflecting a growth rate of 66.79% and 25.80% respectively [8][13].