Sungrow Power Supply(SZ:300274) EBSCN·2024-08-26 13:42Investment Rating - The report maintains a "Buy" rating for the company [3] Core Views - The company reported Q2 results that exceeded expectations, solidifying its leading position in the solar storage sector [1] - The company achieved a revenue of 31.02 billion yuan in H1 2024, a year-on-year increase of 8.38%, and a net profit attributable to shareholders of 4.959 billion yuan, up 13.9% year-on-year [1] - The storage business's profitability surpassed expectations, with a revenue of 7.816 billion yuan in H1 2024, despite a year-on-year decline of 8.3% due to lower system prices [2] - The photovoltaic inverter business showed steady growth, with revenue of 13.093 billion yuan in H1 2024, a year-on-year increase of 12.63% [2] - The renewable energy investment and development business continued to expand, achieving revenue of 8.955 billion yuan in H1 2024, up 18.45% year-on-year [2] Summary by Sections Financial Performance - In Q2 2024, the company achieved revenue of 18.406 billion yuan, a year-on-year increase of 14.74%, and a net profit of 2.863 billion yuan, up 0.57% year-on-year [1] - The company’s H1 2024 revenue from the storage business was 7.816 billion yuan, with a gross margin of 40.08%, an increase of 12.61 percentage points year-on-year [2] - The photovoltaic inverter business generated revenue of 13.093 billion yuan in H1 2024, with a gross margin of 37.62%, an increase of 1.7 percentage points year-on-year [2] - The renewable energy investment and development business reported revenue of 8.955 billion yuan in H1 2024, with a gross margin of 16.88%, an increase of 5.38 percentage points year-on-year [2] Profit Forecast and Valuation - The profit forecast for 2024-2026 has been raised, with expected net profits of 11.2 billion yuan, 12.6 billion yuan, and 14.4 billion yuan respectively, reflecting increases of 7%, 8%, and 11% [2] - The current stock price corresponds to a PE ratio of 13, 11, and 10 for 2024-2026 [2]