Sungrow Power Supply(300274) 民生证券·2024-08-24 12:30Investment Rating - The report maintains a "Recommended" rating for the company [2]. Core Views - The company has solidified its position as a leader in the solar and energy storage sector, with continuous impressive performance [2]. - In the first half of 2024, the company achieved revenue of 31.02 billion yuan, a year-on-year increase of 8.38%, and a net profit attributable to shareholders of 4.96 billion yuan, up 13.89% year-on-year [2]. - The inverter business showed stable growth, with revenue of 13.09 billion yuan in the first half of 2024, a year-on-year increase of 12.63% [2]. - The profitability of the energy storage systems significantly improved, with a gross margin of 40.08%, an increase of 12.61 percentage points year-on-year [2]. - The renewable energy investment and development business steadily grew, achieving revenue of 8.96 billion yuan, a year-on-year increase of 18.45% [2]. - The company is expected to achieve revenues of 88.81 billion, 108.05 billion, and 128.32 billion yuan for 2024, 2025, and 2026, respectively, with corresponding growth rates of 22.9%, 21.7%, and 18.8% [2]. Summary by Sections Financial Performance - In Q2 2024, the company reported revenue of 18.41 billion yuan, a year-on-year increase of 14.74% and a quarter-on-quarter increase of 45.92% [2]. - The net profit for Q2 2024 was 2.86 billion yuan, a year-on-year increase of 0.57% and a quarter-on-quarter increase of 36.56% [2]. - The company’s gross margin for the inverter business was 37.62%, up 1.70 percentage points year-on-year [2]. Business Segments - The inverter business is expanding globally, with over 490 service points and products sold in more than 170 countries [2]. - The energy storage system revenue decreased by 8.30% year-on-year to 7.82 billion yuan, but the gross margin improved significantly [2]. - The renewable energy investment and development segment is focusing on enhancing technology and market service capabilities [2]. Future Projections - The company forecasts net profits of 10.86 billion, 13.10 billion, and 15.67 billion yuan for 2024, 2025, and 2026, respectively, with growth rates of 15.0%, 20.6%, and 19.6% [2]. - The projected PE ratios for 2024, 2025, and 2026 are 13X, 11X, and 9X, respectively [2].