CSI Solar(688472) Shanxi Securities·2024-09-02 13:30Investment Rating - The report maintains a "Buy-A" rating for the company [2][5]. Core Views - The company has adjusted its annual energy storage shipment target upwards due to significant growth in its energy storage business, with expectations of 6.5-7.0 GWh for the year [4]. - The company reported a revenue of 21.96 billion yuan for the first half of 2024, a year-on-year decrease of 15.9%, but a quarter-on-quarter increase of 28.8% in Q2 [3]. - The company has a strong cash position with 12.96 billion yuan in cash as of June 30, 2024, and a net cash flow from operating activities of 2.31 billion yuan in Q2, reflecting a year-on-year increase of 56.8% [4]. Financial Performance Summary - For the first half of 2024, the company achieved a revenue of 21.96 billion yuan, down 15.9% year-on-year, and a net profit of 1.24 billion yuan, down 35.5% year-on-year [3]. - The company expects its earnings per share (EPS) for 2024, 2025, and 2026 to be 0.90, 1.21, and 1.47 yuan respectively, with corresponding price-to-earnings (P/E) ratios of 11.9, 8.9, and 7.3 [5]. - The company’s gross margin is projected to be 15.6% in 2024, with a net profit margin of 6.1% [7]. Market Position and Strategy - The company has a leading position in the global photovoltaic module market, with a shipment of 14.5 GWh in the first half of 2024, and significant growth in overseas markets, particularly in the United States and Southeast Asia [4]. - The company has a robust order backlog of 66 GWh in energy storage projects, with an order value of 2.6 billion USD as of mid-2024 [4]. - The company is focusing on research and development, with a total R&D expenditure of 420 million yuan in the first half of 2024, representing a year-on-year increase of 51.8% [4].