CSI Solar(SH:688472) Shanxi Securities·2024-08-15 09:00Investment Rating - The report assigns a "Buy-A" rating for the company, indicating a strong potential for price appreciation over the next 6-12 months [5]. Core Insights - The company is experiencing significant growth in its energy storage segment, with a projected shipment volume of 6-6.5 GWh for the year, representing a year-on-year increase of approximately 500% [2]. - The company has a robust order backlog of approximately 56 GWh in energy storage systems, with signed contracts amounting to $2.5 billion, providing strong support for future performance [2]. - The company is prioritizing profitability in its component business, achieving a 20% shipment share in the North American market in Q1 2024 [2]. - The company has successfully secured large-scale orders in developed markets, delivering over 5 GWh of energy storage solutions in the first half of the year [3]. - The company reported a net profit of 1.2-1.4 billion yuan for H1 2024, with a sequential increase in net profit for two consecutive quarters [3]. Financial Data and Valuation - The company’s projected earnings per share (EPS) for 2024, 2025, and 2026 are 0.90, 1.21, and 1.47 yuan, respectively, with corresponding price-to-earnings (PE) ratios of 11.3, 8.5, and 7.0 [5]. - The company’s revenue is expected to grow from 54.5 billion yuan in 2024 to 80.6 billion yuan in 2026, with a compound annual growth rate (CAGR) of 17.1% [7]. - The net profit is projected to increase from 3.33 billion yuan in 2024 to 5.42 billion yuan in 2026, reflecting a strong growth trajectory [7]. - The gross margin is expected to improve from 15.6% in 2024 to 14.7% in 2026, indicating a focus on maintaining profitability [7].