SUNOREN(603105) Huafu Securities·2024-04-01 16:00Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 12.31 CNY, indicating an expected upside of over 20% relative to the market benchmark index within the next six months [18][16]. Core Insights - The company's main business remains stable, with expectations for growth in its energy storage business. The photovoltaic power generation segment has shown steady performance, contributing significantly to the company's revenue [3][2]. - The company reported a revenue of 686 million CNY for 2023, a year-on-year increase of 5.59%, and a net profit of 220 million CNY, up 14.95% year-on-year [2]. - The company is actively expanding its distributed photovoltaic power station construction and energy storage business, which is expected to drive future revenue growth [3]. Financial Performance Summary - In 2023, the photovoltaic power generation business generated 596 million CNY in revenue, reflecting a 12.77% increase year-on-year, with a gross margin of 65.66% [3]. - The company’s overall gross margin and net margin improved to 57.38% and 32.08%, respectively, indicating enhanced profitability [3]. - The company’s total assets were reported at 4.351 billion CNY, with a debt-to-asset ratio of 52.39% [4]. Earnings Forecast - The company is projected to achieve net profits of 280 million CNY, 337 million CNY, and 399 million CNY for 2024, 2025, and 2026, respectively, with corresponding P/E ratios of 17, 14, and 12 [3][8]. - Revenue is expected to grow to 805 million CNY in 2024, representing a 17% increase, and further to 1.006 billion CNY in 2025, a 25% increase [8].