Sungrow Power Supply(SZ:300274)2024-05-19 01:30Investment Rating - The report maintains an "Outperform" rating for the company [3][17]. Core Views - The company's inverter and energy storage business continues to show high profitability, with significant overseas brand impact [2][6]. - In 2023, the company achieved a revenue of RMB 72.251 billion, a year-on-year increase of 79.5%, and a net profit of RMB 9.44 billion, up 162.7% [13][17]. - The company is expected to ship approximately 160 GW of inverters in 2024, a year-on-year increase of about 23% [14][17]. - Energy storage shipments are projected to exceed 20 GWh in 2024, doubling from the previous year [15][17]. - Research and development expenses increased significantly, reaching RMB 2.45 billion in 2023, a 44.6% year-on-year rise [16][17]. - The target price for the company's stock has been adjusted down to RMB 129.78 from RMB 135, reflecting a revised PE ratio of 18x for 2024 [17]. Financial Summary - The company reported a gross profit margin of 36.67% in Q1 2024, an increase of 8.7 percentage points year-on-year [13][17]. - The net cash flow from operating activities was RMB 6.982 billion in 2023, a 476.8% increase year-on-year [16][17]. - The estimated net profits attributable to shareholders for 2024-2026 are RMB 10.715 billion (-4%), RMB 12.792 billion (-15%), and RMB 14.976 billion [17].