Sinexcel Electric(SZ:300693) Huachuang Securities·2024-11-06 11:11Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 34.6 CNY, compared to the current price of 25.56 CNY [1]. Core Views - The company reported a revenue of 2.095 billion CNY for the first three quarters, a year-on-year increase of 20.91%, while the net profit attributable to shareholders was 271 million CNY, a slight decrease of 0.93% year-on-year [1]. - The report highlights a significant decline in the growth of the energy storage business due to intensified domestic competition and weak payment collections for some projects, leading the company to forgo low-margin orders [1]. - The company is accelerating its overseas expansion, particularly in the energy storage and charging pile markets, with expectations of recovery in demand following interest rate cuts [1]. Financial Summary - Total revenue for 2023 is projected at 2.651 billion CNY, with a year-on-year growth rate of 76.4%. The net profit is expected to be 403 million CNY, reflecting a growth rate of 80.2% [2]. - The company anticipates net profits of 428 million CNY in 2024, 537 million CNY in 2025, and 653 million CNY in 2026, with corresponding P/E ratios of 19, 15, and 12 [2][6]. - The gross margin for the third quarter was reported at 41.46%, with a quarter-on-quarter increase of 1.87 percentage points [1]. Business Segments - The company’s four main business segments reported the following revenues for the first three quarters: Industrial Power Supply at 402 million CNY (up 8.93%), New Energy Power Conversion Equipment at 619 million CNY (up 6.84%), Electric Vehicle Charging Equipment at 859 million CNY (up 45%), and Battery Testing and Formation Equipment at 185 million CNY (up 1.9%) [1]. - The report indicates that the electric vehicle charging equipment segment continues to show strong growth, while the energy storage segment has faced challenges [1]. Market Outlook - The company is focusing on expanding its overseas market presence, particularly in the U.S. and Europe, where it has established strategic partnerships for charging piles [1]. - The report suggests that the energy storage market may see a rebound in demand as interest rates decrease, which could lead to improved revenue and margins in the coming years [1].