Sungrow Power Supply(SZ:300274) Shanxi Securities·2024-09-09 15:30Investment Rating - The report maintains a "Buy-A" rating for the company, indicating an expected price increase of over 15% compared to the benchmark index [2][4]. Core Views - The company has shown strong performance in Q2, with significant growth in both inverter and energy storage businesses, leading to an overall revenue increase of 8.4% year-on-year for the first half of 2024 [3][4]. - The company's inverter business achieved revenue of 13.09 billion yuan in the first half of 2024, a year-on-year increase of 12.6%, with a gross margin of 37.62%, up 1.7 percentage points [1][3]. - The energy storage segment saw a revenue of 7.82 billion yuan, a decrease of 8.3% year-on-year, but the gross margin improved significantly to 40.1%, an increase of 12.6 percentage points, benefiting from lower battery cell costs [1][3]. Financial Performance - For the first half of 2024, the company reported total revenue of 31.02 billion yuan and a net profit attributable to shareholders of 4.96 billion yuan, reflecting a year-on-year increase of 13.9% [3][4]. - The earnings per share (EPS) for 2024 is projected to be 5.64 yuan, with expected EPS growth of 6.39 yuan in 2025 and 7.36 yuan in 2026 [1][5]. - The company’s net asset return rate (ROE) is projected to be 30.1% in 2024, decreasing to 25.8% in 2025 and 23.2% in 2026 [5][6]. Market Position and Strategy - The company is expanding its market presence in Europe, America, Australia, and China, with over 490 global service points [1][3]. - Strategic partnerships have been established, including a 3.5GW supply agreement with Gulf Energy in Thailand and multiple significant projects in the Middle East and Europe [1][3]. - The company continues to invest in research and development, launching new products such as the SG150CX-CN high-power string inverter and a micro-inverter series aimed at commercial applications [1][3].