Sungrow Power Supply(300274) KAIYUAN SECURITIES·2024-11-01 07:42Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a slight miss in Q3 performance due to increased sales expenses, with Q3 revenue at 18.93 billion yuan, a year-over-year increase of 6.4% [3][4] - The company maintains a strong position in the photovoltaic inverter market, with expected shipment growth of 15-20% in 2025 [4] - The company has a robust pipeline of renewable energy investment projects, with inventory balance reaching 32.2 billion yuan as of Q3 2024, an increase of 10.7 billion yuan since the beginning of the year [4] Financial Performance Summary - For the first three quarters of 2024, the company achieved revenue of 49.95 billion yuan, a year-over-year increase of 7.6%, and a net profit of 7.60 billion yuan, up 5.2% year-over-year [3] - Q3 2024 results showed revenue of 18.93 billion yuan, with a quarter-over-quarter increase of 2.8% but a year-over-year decrease of 8.0% in net profit [3] - The company's gross margin for Q3 was 29.5%, with a net margin of 14.2% [3] Future Projections - The company has slightly adjusted its profit forecasts for 2024-2026, now expecting net profits of 11.13 billion yuan, 13.44 billion yuan, and 15.86 billion yuan respectively [3] - Earnings per share (EPS) projections for 2024-2026 are 5.36 yuan, 6.48 yuan, and 7.65 yuan, corresponding to price-to-earnings (P/E) ratios of 16.9, 14.0, and 11.8 [3][5] Market Position and Strategy - The company is actively expanding its overseas energy storage market, with 60% of its energy storage shipments in the first three quarters of 2024 coming from international markets [4] - Significant contracts have been secured in emerging markets, including a 7.8 GWh energy storage project in the Middle East and an 880 MWh project in Latin America [4]