Sungrow Power Supply(SZ:300274) Haitong Securities International·2026-01-16 07:05Investment Rating - The report initiates coverage with an OUTPERFORM rating, setting a target price of RMB 206.00 based on a current price of RMB 165.46 [2]. Core Insights - The company, Sungrow Power Supply, is positioned as a leader in the global photovoltaic inverter market and is experiencing significant growth in its energy storage business, which is expected to become the primary growth engine [3][5]. - The global photovoltaic installation demand is projected to continue its long-term growth trend, with new installations expected to reach approximately 610GW in 2025 and 642GW in 2026 [4][33]. - The energy storage market is anticipated to see a compound annual growth rate (CAGR) exceeding 50% from 2021 to 2027, with large-scale storage installations expected to rise from 28.4GWh to 605GWh [5][42]. Company Overview - Sungrow Power Supply was established in 1997 and went public in 2011, focusing on the research, production, and sales of renewable energy equipment, including photovoltaic, wind, storage, and hydrogen energy technologies [9][11]. - The company has built a comprehensive industrial chain covering core equipment manufacturing, system integration, and energy services, forming a synergistic ecosystem [9][10]. Photovoltaic Inverters - The company maintains a leading market share in photovoltaic inverters, with a global shipment volume of 147GW in 2024, representing a year-on-year growth of 13.08% and a market share of approximately 23%-25% [4][41]. - The product matrix includes a range of inverters suitable for various applications, from residential to large-scale ground-mounted power plants, ensuring a robust global presence [3][10]. Energy Storage - The energy storage business is expected to surpass the photovoltaic inverter segment as the primary growth driver by 2025, with significant orders and a high proportion of overseas orders [5][42]. - The company has developed advanced energy storage solutions, including the PowerTitan liquid-cooled storage system, which has been successfully implemented in major projects [10][42]. Financial Performance - For the first three quarters of 2025, the company reported revenues of RMB 664.02 billion, a year-on-year increase of 32.95%, and a net profit of RMB 118.81 billion, reflecting a substantial growth of 56.34% [22][23]. - The gross profit margin improved to 34.88%, indicating enhanced profitability and cash flow management [22][23]. Global Expansion - Sungrow Power Supply has expanded its operations to over 180 countries, with a strong presence in Europe, North America, the Middle East, and emerging markets [30][42]. - The company is well-positioned to benefit from the increasing demand for renewable energy solutions globally, particularly in large-scale storage projects [42][46].