Sungrow Power Supply(300274) Soochow Securities·2024-10-15 07:00Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company plans to issue GDRs on the Frankfurt Stock Exchange to accelerate its overseas capacity expansion and enhance its global brand presence, aiming to raise approximately 4.88 billion yuan [3] - The funds will be allocated to increase domestic energy storage capacity and expand overseas production, which is expected to improve supply chain stability and global delivery capabilities [3] - The company is experiencing strong demand in overseas markets, particularly in the U.S., Europe, and the Middle East, with significant growth in energy storage shipments anticipated [3] - The report forecasts a steady increase in revenue and net profit for the company, projecting net profits of 11 billion, 14 billion, and 17 billion yuan for 2024, 2025, and 2026 respectively [3] Financial Forecasts and Valuation - Total revenue is expected to grow from 72.25 billion yuan in 2023 to 120.64 billion yuan in 2026, with a compound annual growth rate of approximately 18.53% [2][3] - The net profit attributable to shareholders is projected to increase significantly, with a year-on-year growth of 17% in 2024, 27% in 2025, and 20% in 2026 [3] - The report assigns a target price of 135 yuan for the stock based on a 20x PE ratio for 2025 [3] Market Data - The current closing price of the stock is 96.75 yuan, with a market capitalization of approximately 200.58 billion yuan [6] - The stock has a price-to-earnings ratio of 21.25 for 2023, which is expected to decrease to 11.89 by 2026 [10]