Investment Rating - The investment rating for Ginlong Technologies is maintained at OVERWEIGHT with a target price of RMB 56.76 [1][5]. Core Insights - In 2024, Ginlong Technologies reported revenue of RMB 6,542 million, a year-on-year increase of 7.23%, but the attributable net profit decreased by 11.32% to RMB 691 million, primarily due to weaker overseas demand and inventory destocking [1][2]. - The company's power station business showed strong performance, contributing to a significant revenue increase in the first quarter of 2025, with revenue reaching RMB 1,518 million, up 8.65% year-on-year [2][4]. - The inverter segment faced challenges due to overseas destocking and intensified price competition, although the company sold 913,000 units of grid-connected inverters, marking a 22.3% increase year-on-year [3][5]. Financial Performance - In 2024, Ginlong's new energy power production business generated revenue of RMB 617 million, reflecting a substantial year-on-year growth of 111% [4]. - The gross profit margin for the inverter business was under pressure, with a GPM of 18.7% for PV inverters, down 3.0 percentage points year-on-year [3]. - The company revised its net profit forecasts for 2025 and 2026 down to RMB 1,031 million and RMB 1,292 million, respectively, due to the pressures in the inverter market [5]. Market Position - Ginlong Technologies is recognized as a top-tier player in the inverter segment, with strong product capabilities and a favorable outlook for its power production business [1][5]. - The company is aligning its product innovation with market trends, including a convertible-bond issuance plan to increase capacity for high-power grid-connected and hybrid storage inverters [3][5].

Investment Rating - The investment rating for Sineng Electric is maintained at BUY with a target price of RMB 34.00 [1][4][8] Core Views - Sineng Electric's revenue for 2024 is projected at RMB 4,773 million, with an attributable net profit of RMB 419 million, reflecting a year-on-year decline in revenue of 3.2% but a significant increase in net profit of 46.5% [1] - The company is experiencing intensified competition in the energy storage market, particularly in the Middle East, which has affected pricing and shipment volumes [4] - The report anticipates that the company's expansion in overseas markets, particularly in Asia, Africa, Latin America, and Europe, will drive incremental growth [1][4] Financial Performance - For 2024, the revenue from the PV inverter business is expected to be RMB 2.75 billion, down 4% year-on-year, while the gross profit margin (GPM) improved by 2.3 percentage points to 22.6% [2] - Energy storage revenue is projected to be RMB 1.93 billion, largely flat year-on-year, with a GPM increase of 5.8 percentage points to 22.0% [3] - The estimated attributable net profit for 2025 and 2026 is revised down to RMB 610 million and RMB 751 million, respectively, due to lower shipment volume assumptions [4] Market Outlook - The report highlights a robust growth in demand for solar-plus-storage systems both domestically and internationally, which is expected to benefit Sineng Electric's business [4] - The estimated average selling price (ASP) for PV inverters in 2024 is projected to be RMB 0.11/Wh, reflecting an 11% decline year-on-year [2] - The company is expected to maintain a steady ASP for energy storage systems at approximately RMB 0.16/W in 2024 [3]