Linyang Energy(SH:601222) GF SECURITIES·2024-05-10 11:32Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 8.72 CNY per share based on a 15.0x PE for the projected net profit in 2024 [19][32]. Core Views - The company has shown steady growth in 2023 and Q1 2024, with revenue reaching 6.872 billion CNY, a year-on-year increase of 39.0%, and a net profit of 1.031 billion CNY, up 20.5% [26][32]. - The report highlights the company's strong performance in the smart power distribution sector, both domestically and internationally, and anticipates continued growth in the renewable energy and energy storage segments [26][74]. Summary by Sections Financial Forecast and Investment Recommendations - The company is expected to achieve net profits of 1.197 billion CNY, 1.407 billion CNY, and 1.557 billion CNY for 2024, 2025, and 2026, respectively, with growth rates of 16.1%, 17.5%, and 10.7% [18][32]. - Revenue is projected to grow from 6.872 billion CNY in 2023 to 15.759 billion CNY by 2026, reflecting a compound annual growth rate of 39.0% for 2024 and 29.5% for 2025 [11][32]. Business Segments - The smart power distribution segment is expected to grow at rates of 5.0%, 7.0%, and 5.0% from 2024 to 2026, with a gross margin of 35% [14]. - The TOPCon solar cell business is projected to see revenue growth of 141.8%, 100.0%, and 33.3% from 2024 to 2026, with a gross margin of 15% [23]. - The energy storage system integration segment is anticipated to grow by 40.0%, 35.0%, and 30.0% from 2024 to 2026, maintaining a gross margin of 16% [68]. Market Position and Strategy - The company is actively expanding its international presence, collaborating with global leaders in smart metering and establishing a strong foothold in markets such as Europe and the Middle East [26][74]. - The report emphasizes the company's competitive edge in the smart power distribution market, supported by its innovative solutions and strategic partnerships [26][74].