Sungrow Power Supply(SZ:300274) Dongguan Securities·2025-08-28 08:20Investment Rating - The report maintains a "Buy" rating for the company, indicating an expectation that the stock will outperform the market index by more than 15% over the next six months [9]. Core Insights - The company has shown impressive performance in its half-year results for 2025, with significant growth in revenue and profit margins. The revenue reached 435.33 billion yuan, a year-on-year increase of 40.34%, while the net profit attributable to shareholders was 77.35 billion yuan, up 55.97% year-on-year [5]. - The energy storage system business has experienced rapid growth, with global shipments reaching 28 GWh in 2024 and revenue from this segment amounting to 178.03 billion yuan, reflecting a year-on-year growth of 127.78% [1][5]. - The company has increased its R&D investment significantly, amounting to 20.37 billion yuan in the first half of 2025, a 37% increase year-on-year, enhancing its global competitiveness [5]. Summary by Sections Financial Performance - In the first half of 2025, the company achieved a gross margin of 34.36%, an increase of 1.94 percentage points year-on-year, and a net margin of 17.99%, up 1.72 percentage points year-on-year [5]. - The second quarter of 2025 saw revenue of 244.97 billion yuan, a year-on-year increase of 33.09%, and a net profit of 39.08 billion yuan, up 36.53% year-on-year [5]. Product Development - The company launched the PowerTitan 3.0 AC energy storage platform, featuring three models with varying capacities, and introduced innovative inverter products, including the world's first 400 kW+ string inverter [5][6]. - The energy storage systems are widely applied in various global markets, including Europe, America, and Asia-Pacific, with no reported safety incidents in the projects [6]. Market Outlook - The company is expected to continue expanding its global market presence, with projected earnings per share (EPS) of 6.09 yuan, 6.96 yuan, and 7.80 yuan for 2025, 2026, and 2027, respectively, corresponding to price-to-earnings (PE) ratios of approximately 16, 14, and 12 [8].