Sungrow Power Supply(300274) Haitong Securities·2024-10-16 01:11Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2] Core Views - The company plans to issue Global Depositary Receipts (GDR) overseas and list them on the Frankfurt Stock Exchange, representing up to 10% of its total share capital [5] - The funds raised, estimated to be no more than RMB 4.88 billion, will be allocated to various projects including advanced energy storage equipment manufacturing, expansion of overseas inverter equipment and storage products, digital enhancement projects, and the construction of a research and development center in Nanjing [5] - The energy storage market is expected to grow significantly, with the company's energy storage system revenue increasing from 13.0% of total revenue in 2021 to 25.2% in the first half of 2024, indicating a strong growth driver for the company's performance [5][6] - The company aims to enhance its production capacity and global presence while investing in digital upgrades and R&D to strengthen its core competitiveness [6] - Profit forecasts for 2024 and 2025 are projected at RMB 11.36 billion and RMB 13.63 billion respectively, with a PE valuation of 20-22 times for 2024, leading to a reasonable value range of RMB 109.60-120.56 [6][7] Financial Summary - The company's revenue is expected to grow from RMB 72.25 billion in 2023 to RMB 129.90 billion by 2026, with a year-on-year growth rate of 79.5% in 2023 and 19.1% in 2024 [7][9] - Net profit is projected to increase from RMB 9.44 billion in 2023 to RMB 15.77 billion by 2026, with a significant year-on-year growth of 162.7% in 2023 [7][9] - The gross margin is expected to stabilize around 30.4% in 2023 and slightly decrease to 28.9% by 2026 [9][10] Market Position - The company has established a significant first-mover advantage in the energy storage sector since 2015, positioning itself as a leader in the industry [5][6] - The company’s existing energy storage system capacity is nearing saturation, and the new projects funded by the GDR issuance will significantly enhance its delivery capabilities [5][6] - The company’s strategy reflects confidence in scaling growth and reinforcing its brand barriers, solidifying its position as an industry leader [6]