Sungrow Power Supply(SZ:300274) Tai Ping Yang·2024-05-16 00:00Investment Rating - The report maintains a "Buy" rating for the company, with a target price based on the last closing price of 102.69 [1][10]. Core Insights - The company demonstrated robust growth in its 2023 annual report and 2024 Q1 report, solidifying its leading position in the industry [1][10]. - In 2023, the company achieved a revenue of 72.25 billion, a year-on-year increase of 79.5%, and a net profit of 9.44 billion, up 162.7% year-on-year [7][11]. - The company continues to innovate in product development, particularly in high-power string inverters and energy storage systems, which are expected to maintain its competitive edge [8][9]. Financial Performance Summary - 2023 Financials: - Revenue: 72.25 billion, up 79.5% YoY - Net Profit: 9.44 billion, up 162.7% YoY - Gross Margin: 30.36%, up 5.8 percentage points YoY - Net Margin: 13.3%, up 4.1 percentage points YoY [7][11][12] - 2024 Q1 Financials: - Revenue: 12.61 billion, up 0.26% YoY - Net Profit: 2.1 billion, up 39.1% YoY - Gross Margin: 36.7%, up 8.7 percentage points YoY [7][11]. Business Segment Performance - Inverter Segment: - In 2023, inverter revenue reached 27.65 billion, a 61% increase YoY, with a shipment volume of 130 GW, up 68.8% from 2022 [8]. - Energy Storage Segment: - Energy storage revenue was 17.8 billion, a 75.8% increase YoY, with a global shipment of 10.5 GWh, maintaining the top position among Chinese companies for eight consecutive years [9]. - New Energy Development: - Revenue from new energy development reached 24.7 billion, a 113% increase YoY, with significant growth in household and commercial photovoltaic installations [9]. Future Projections - The company is expected to continue benefiting from industry demand growth, with projected revenues of 87.32 billion, 106.16 billion, and 122.62 billion for 2024, 2025, and 2026 respectively, reflecting growth rates of 20.86%, 21.57%, and 15.51% [10][11]. - Net profit forecasts for the same period are 10.81 billion, 12.53 billion, and 14.03 billion, with growth rates of 14.51%, 15.93%, and 11.92% respectively [10][11].