Sungrow Power Supply(SZ:300274) Huaxin Securities·2025-09-27 11:15Investment Rating - The report initiates coverage with a "Buy" investment rating for the company [8] Core Insights - The company has demonstrated stable revenue growth and improved profitability, with a 40% year-on-year increase in revenue to 43.53 billion yuan and a 56% increase in net profit to 7.73 billion yuan in the first half of 2025 [5] - The energy storage segment has seen over 128% growth, while the inverter segment grew by 17%, indicating strong demand and a solid market position [6] - The establishment of the AIDC (Artificial Intelligence Data Center) division is expected to open new growth avenues, leveraging the company's technological expertise in power supply and electronic power conversion [7] Financial Performance - For the first half of 2025, the company achieved a gross margin of 34.36%, up 1.94 percentage points year-on-year, and a net margin of 17.77%, up 1.78 percentage points year-on-year [5] - Revenue projections for 2025-2027 are 97.5 billion, 109.2 billion, and 122.9 billion yuan respectively, with corresponding EPS estimates of 6.88, 7.74, and 8.71 yuan [8][10] - The company is expected to maintain a strong return on equity (ROE) of 27.2% in 2025, gradually decreasing to 22.0% by 2027 [11] Market Position and Growth Potential - The company has established a strong reputation in the energy storage market, supported by significant R&D investments and the launch of the PowerTitan 3.0 AC smart storage platform [6] - The global demand for energy solutions, particularly in data centers, positions the company favorably for future growth, especially with its focus on green energy solutions [7]