Sungrow Power Supply(300274) Soochow Securities·2024-11-03 10:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a significant increase in energy storage shipments in Q3, with growth expected in the US and emerging markets [2][3] - The company's inverter shipments continue to rise due to improving photovoltaic installation demand, maintaining stable gross margins across markets [2] - The company is projected to maintain its leading position in the industry, with expected net profits of 110 billion, 140 billion, and 169 billion yuan for 2024, 2025, and 2026 respectively, reflecting year-on-year growth of 17%, 27%, and 20% [3] Financial Performance Summary - For Q1-Q3 2024, the company achieved total revenue of 49.95 billion yuan, a year-on-year increase of 7.6%, and a net profit of 7.6 billion yuan, a year-on-year increase of 5.2% [2] - Q3 revenue was 18.93 billion yuan, with a quarter-on-quarter increase of 6.4% and a year-on-year increase of 2.8% [2] - The gross margin for Q3 was 29.5%, showing a quarter-on-quarter decrease of 4.9 percentage points [2] - Operating cash flow turned positive in Q3, with 3.41 billion yuan, indicating improved cash flow management [3] Earnings Forecast and Valuation - The company maintains its previous earnings forecast, expecting net profits of 110 billion, 140 billion, and 169 billion yuan for 2024, 2025, and 2026 respectively [3] - A target price of 135 yuan is set based on a 20x PE ratio for 2025 [3]