Sineng(300827)2024-10-29 09:03Investment Rating - The report maintains a "Buy" rating for the company [2][4]. Core Insights - The company has achieved significant growth in profitability, with a notable increase in net profit by 44.82% year-on-year for the first three quarters of 2024, despite a revenue decline of 7.30% [2][6]. - The expansion into overseas solar and storage markets has yielded positive results, contributing to improved profitability [2][6]. - The company reported a gross margin of 29.26% in Q3 2024, an increase of 5.62 percentage points year-on-year, indicating enhanced operational efficiency [6]. Financial Performance Summary - For the first three quarters of 2024, the company generated revenue of 3.069 billion yuan, down 7.30% year-on-year, while net profit attributable to shareholders reached 302 million yuan, up 44.82% [2][6]. - In Q3 2024 alone, revenue was 1.143 billion yuan, reflecting a slight increase of 0.83% year-on-year, but a decrease of 5.88% quarter-on-quarter [2][6]. - The company’s contract liabilities increased by 43% from the previous quarter, indicating a strong order backlog [6]. Market Expansion and Demand Growth - The company has strategically targeted emerging markets such as the Middle East, India, Africa, and Southeast Asia, where solar and storage market potential is significant due to favorable sunlight conditions and weaker grid infrastructure [6]. - In H1 2024, overseas business revenue surged by 115.46% year-on-year, showcasing the effectiveness of the company's international expansion strategy [6]. - The company made its first shipment of 22 string inverter energy storage systems to the U.S. market in September 2024, marking a significant milestone in its entry into high-value markets [6]. Future Projections - Revenue projections for 2024-2026 are estimated at 6.738 billion yuan, 8.629 billion yuan, and 10.592 billion yuan, with year-on-year growth rates of 36.61%, 28.05%, and 22.75% respectively [6][7]. - Net profit forecasts for the same period are 524 million yuan, 773 million yuan, and 1.041 billion yuan, with growth rates of 83.39%, 47.37%, and 34.75% respectively [6][7]. - The expected earnings per share (EPS) for 2024-2026 are 1.46 yuan, 2.15 yuan, and 2.90 yuan, indicating a compound annual growth rate (CAGR) of 53.85% over three years [6][7].