GoodWe Technologies (SH:688390) Tai Ping Yang·2024-05-16 02:30Investment Rating - The report assigns a "Buy" rating to the company, with an upward adjustment [1][12][13] Core Views - The company's performance is currently under pressure, but there is an expectation for demand to improve gradually [1][6] - The company is a leader in the distributed solar storage market and is expected to benefit from industry expansion and demand growth in the long term [7] Financial Performance Summary - In 2023, the company achieved revenue of 7.35 billion, a year-on-year increase of 56.1%, and a net profit of 850 million, up 31.2% year-on-year [4][8] - For Q1 2024, the company reported revenue of 1.13 billion, a decline of 34.5% year-on-year, and a net loss of 28 million [4][5] - The gross profit margin for 2023 was 30.76%, while it dropped to 19.56% in Q4 2024 [4][5] Sales and Market Dynamics - The company sold approximately 686,300 inverters in 2023, with grid-connected inverters increasing by 15.4% year-on-year, while energy storage inverters decreased by 32.2% [5] - The company has expanded its market presence, selling products in multiple countries including Germany, Australia, and Italy, indicating a potential recovery in demand as inventory levels normalize in Europe [6] Earnings Forecast and Valuation - Revenue projections for 2024-2026 are 9.05 billion, 11.96 billion, and 14.60 billion, representing year-on-year growth rates of 23.1%, 32.1%, and 22.1% respectively [7][8] - The expected net profit for 2024 is 710 million, with a projected PE ratio of 25.23 [8]