Core Insights - Company reported strong financial performance for H1 2025, with revenue of 43.53 billion yuan, a year-on-year increase of 40.3%, and a net profit of 7.73 billion yuan, up 56.0% year-on-year [1] - The company continues to deepen its global layout in the inverter business, achieving revenue of 15.33 billion yuan, a 17.1% increase year-on-year [2] - The energy storage segment showed remarkable growth, with revenue reaching 17.80 billion yuan, a 127.8% increase year-on-year, contributing 40.9% to total revenue [4] Financial Performance - H1 2025 revenue reached 43.53 billion yuan, with a net profit of 7.73 billion yuan, and a gross margin of 34.4%, up 1.9 percentage points year-on-year [1] - Q2 2025 revenue was 24.50 billion yuan, a 33.1% year-on-year increase and a 28.7% quarter-on-quarter increase, with a net profit of 3.91 billion yuan, up 36.5% year-on-year [1] Inverter Business - The inverter and power electronics segment generated 15.33 billion yuan in revenue, with a gross margin of 35.7%, down 1.9 percentage points year-on-year [2] - The company launched the modular inverter 1+X 2.0 version, enhancing its technological competitiveness [3] Energy Storage Growth - The energy storage systems business achieved 17.80 billion yuan in revenue, with a gross margin of 39.9%, slightly down by 0.2 percentage points year-on-year [4] - The company introduced the "Stem Cell Network Technology 2.0 White Paper," creating a three-level collaborative architecture for customized network solutions [4] R&D Investment - R&D investment reached 2.04 billion yuan, a 37.1% increase year-on-year, focusing on new technologies including modular inverters and energy storage systems [5] - The establishment of the AIDC division aims to provide comprehensive green energy system solutions, particularly targeting overseas markets [5] Profit Forecast - Projected revenues for 2025-2027 are 94.61 billion yuan, 107.93 billion yuan, and 122.34 billion yuan, with year-on-year growth rates of 21.5%, 14.1%, and 13.4% respectively [6] - Expected net profits for the same period are 14.57 billion yuan, 15.98 billion yuan, and 17.41 billion yuan, with growth rates of 32.0%, 9.7%, and 9.0% respectively [6]

Core Viewpoint - The company, Sunshine Power, reported significant growth in its financial performance for the first half of 2025, with a focus on expanding its global presence through the issuance of H-shares for listing on the Hong Kong Stock Exchange [2][7]. Financial Performance - The company's total revenue reached 43.533 billion yuan, representing a year-on-year increase of 40.34% [2]. - The net profit attributable to shareholders was 7.735 billion yuan, up 55.97% year-on-year [2]. - The non-recurring net profit was 7.495 billion yuan, reflecting a growth of 53.52% compared to the previous year [2]. Revenue Breakdown by Sector - The energy storage sector generated revenue of 17.803 billion yuan, showing a remarkable year-on-year growth of 127.78% with a gross margin of 39.92% [3][4]. - The photovoltaic sector earned 22.513 billion yuan, accounting for 51.72% of total revenue, with a year-on-year growth of 4.84% [3]. - Other business segments contributed 3.217 billion yuan, representing 7.39% of total revenue, with an increase of 85.96% year-on-year [3]. Revenue Breakdown by Product - Revenue from photovoltaic inverters and other power electronic conversion devices was 15.327 billion yuan, up 17.06% year-on-year, with a gross margin of 35.74% [4]. - The energy storage system revenue surpassed that of photovoltaic inverters for the first time [5]. - Revenue from new energy investment and development was 8.398 billion yuan, down 6.22% year-on-year [4]. - Revenue from photovoltaic power generation was 761 million yuan, reflecting a growth of 59.44% [4]. Revenue Breakdown by Region - Domestic revenue was 18.155 billion yuan, a year-on-year increase of 3.48%, accounting for 41.70% of total revenue [6]. - Overseas revenue reached 25.379 billion yuan, marking an impressive growth of 88.32% and representing 58.30% of total revenue [6]. Research and Development - The company invested 2.037 billion yuan in R&D, a year-on-year increase of 37%, with R&D personnel accounting for approximately 40% of the workforce [8]. - The company holds a total of 10,541 patent applications, including 5,690 invention patents [8]. Product Innovations - The company launched the PowerTitan 3.0 AC smart storage platform, featuring various models with high energy density [9]. - The PowerTitan 2.0 system has been widely applied globally, supporting various energy storage projects [10]. - The company introduced a new commercial liquid-cooled energy storage system, PowerStack 835CS, aimed at industrial applications [10]. Technological Advancements - The company upgraded its core network technology, introducing a three-tier collaborative architecture for energy storage systems [11]. - The company published the first battery management technology white paper, integrating AI and IoT to enhance data management [12]. Market Applications - The company's energy storage systems are widely used in mature electricity markets across Europe, America, the Middle East, and Asia-Pacific, with no reported safety incidents [13].

Investment Rating - The report upgrades the company's rating to "Buy" based on its strong growth prospects and attractive valuation, with a projected PE of 12 times for 2025 [10]. Core Views - The company is a leading player in the global inverter and energy storage market, with significant brand and technological advantages, and a strong overseas market presence. The core concern affecting the company's stock price is the sustainability of energy storage unit profitability, which has led to a long-term suppression of valuation and expectations. However, global energy storage demand is expected to continue to grow, and the company's energy storage gross margin is anticipated to recover to normal levels in the second half of this year, remaining above market expectations [1][3][10]. Summary by Sections Historical Performance - The company's stock price has experienced three phases since its listing. From 2011 to 2018, the main business was in inverters and EPC for power plants, heavily reliant on domestic photovoltaic subsidy policies. From 2019 to 2021, the company rapidly expanded its overseas inverter market share due to IGBT shortages and the pandemic, leading to significant stock price increases. Since 2022, the energy storage business has emerged as a second growth curve, with its output and profitability exceeding expectations, driving the stock price to outperform the photovoltaic index [2][19][20]. Current Situation - The energy storage business has become the core contradiction affecting the company's ROE and stock price. The inverter business has stabilized, with steady gross margins, while energy storage profits have significantly increased in recent years. The gross margin for energy storage is expected to improve due to the decline in lithium carbonate prices, but profitability per watt is projected to decline as the impact of lithium price decreases weakens [3][44]. Future Outlook - The company has sufficient orders on hand, with demand expected to grow rapidly in regions outside of the US and China, including Europe, the Middle East, South America, and Southeast Asia. The energy storage business is projected to ship 25-30 GWh in 2024, with global energy storage demand growth expected to reach 40-50% by 2025. The inverter business is expected to grow at around 10% annually, while the hydrogen energy business is anticipated to become a third growth curve [10][9][10]. Financial Projections - The company is expected to achieve revenues of 813.81 billion, 981.61 billion, and 1,108.91 billion yuan from 2024 to 2026, with net profits of 108.9 billion, 127.07 billion, and 140.19 billion yuan, corresponding to PE valuations of 13.69, 11.73, and 10.64 times [10].