Sungrow Power Supply(SZ:300274) Shanxi Securities·2024-07-19 11:30Investment Rating - The report maintains a "Buy-A" rating for the company, indicating an expected price increase of over 15% compared to the benchmark index within the next 6-12 months [2][5]. Core Insights - The company has signed the world's largest energy storage project with a capacity of 7.8GWh in Saudi Arabia, which is set to start delivery in 2024 and achieve full capacity by 2025, supporting Saudi Arabia's Vision 2030 [3][4]. - The company is benefiting from a booming global energy storage market, with a projected 33% year-on-year increase in global energy storage installations in 2024 [1][4]. - The company has also secured multiple significant contracts, including an 880MWh independent storage order in Latin America and a 3.5GWp solar storage supply agreement in Thailand [1][3]. Financial Performance - The company’s earnings per share (EPS) for 2024-2026 are projected to be 5.08, 5.96, and 6.37 respectively, with corresponding price-to-earnings (P/E) ratios of 14.1, 12.0, and 11.2 [5][7]. - Revenue is expected to grow significantly, with projected revenues of 90.69 billion yuan in 2024, reflecting a year-on-year increase of 25.5% [6][7]. - The net profit for 2024 is forecasted to be 10.52 billion yuan, with a year-on-year growth of 11.5% [6][7]. Market Position and Strategy - The company has expanded its global presence with over 490 service points and products sold in more than 170 countries, positioning itself to capitalize on the increasing demand for energy storage solutions [1][4]. - A share buyback plan has been announced, with a total investment of between 5 billion yuan and 10 billion yuan, reflecting the company's confidence in its future growth and commitment to enhancing shareholder value [1][2].