KSTAR(SZ:002518) Tianfeng Securities·2024-04-28 03:00Investment Rating - The investment rating for the company is "Buy" (maintained rating) with a target price not specified [5]. Core Views - The company achieved a revenue of 5.44 billion yuan in 2023, representing a year-over-year increase of 23.6%, and a net profit attributable to shareholders of 845 million yuan, up 28.8% year-over-year [1]. - In Q1 2024, the company reported a revenue of 831 million yuan, down 41% year-over-year and 39% quarter-over-quarter, primarily due to inventory accumulation in the downstream channels of the overseas household storage business and fluctuations in market demand [1][2]. - The company is expected to benefit from the growth of cloud computing, AI, and mobile internet, leading to accelerated development of large-scale data centers and edge data centers [4]. - The company has diversified its product offerings in the renewable energy sector, including high-power photovoltaic inverters and energy storage systems, which are expected to mitigate the impact of inventory issues in household storage products [4]. Financial Performance Summary - The company’s revenue for 2023 was 5.44 billion yuan, with a growth rate of 23.61% projected for 2024, reaching an estimated 6.53 billion yuan [10]. - The net profit attributable to shareholders for 2023 was 845 million yuan, with an expected increase to 917 million yuan in 2024, reflecting a growth rate of 8.46% [10]. - The gross profit margin for 2023 was 32.89%, with a slight increase expected in the coming years [10]. - The company’s total assets are projected to reach 9.36 billion yuan by 2024, with a debt-to-asset ratio of 43.11% [13]. Product Segmentation - Revenue from smart power and data center products was 2.51 billion yuan in 2023, up 14.87% year-over-year, with a gross margin of 38.46% [8]. - Revenue from photovoltaic and energy storage products was 2.69 billion yuan, showing a significant increase of 38.33% year-over-year, with a gross margin of 26.49% [8]. - The company signed a 1.415 billion yuan energy storage contract with a client in 2023, with 1.115 billion yuan fulfilled by the end of the year, although the execution period has been extended due to high inventory levels [8].