Sungrow Power Supply(300274) 民生证券·2024-11-03 03:12Investment Rating - The report maintains a "Recommend" rating for Sungrow Power (300274 SZ) [1][3] Core Views - Sungrow Power achieved revenue of RMB 49 946 billion in the first three quarters of 2024, a YoY increase of 7 61% Net profit attributable to the parent company was RMB 7 6 billion, up 5 21% YoY [1] - In Q3 2024, revenue reached RMB 18 926 billion, a YoY increase of 6 37%, but net profit attributable to the parent company declined by 7 96% YoY to RMB 2 64 billion [1] - The company's profitability slightly decreased due to delayed revenue recognition and changes in shipment structure, with domestic market revenue share increasing and intensified competition in the energy storage market [1] - The company plans to issue GDRs overseas to expand global production capacity, including 15GWh of energy storage products and 50GW of inverter equipment [1] - Revenue for 2024-2026 is forecasted to be RMB 81 803 billion, RMB 98 540 billion, and RMB 119 186 billion, with YoY growth rates of 13 2%, 20 5%, and 21 0% respectively [1][4] Financial Performance - Q3 2024 gross margin was 29 52%, stable QoQ, while net profit margin decreased by 1 81pct QoQ to 14 16% [1] - Inventory at the end of Q3 2024 was RMB 32 151 billion, an increase of RMB 4 014 billion QoQ, mainly due to increased projects under development and preparation for overseas energy storage orders [1] - Operating cash flow in Q3 2024 was RMB 3 408 billion, a QoQ increase of 55 24% [1] - The company's 2024-2026 net profit attributable to the parent company is expected to be RMB 10 9 billion, RMB 13 082 billion, and RMB 15 969 billion, with YoY growth rates of 15 5%, 20 0%, and 22 1% respectively [1][4] Valuation and Forecast - The company's 2024-2026 PE ratios are 17X, 14X, and 11X based on the closing price on November 1, 2024 [1][4] - EPS for 2024-2026 is forecasted to be RMB 5 26, RMB 6 31, and RMB 7 70 respectively [4] - PB ratios for 2024-2026 are 4 8X, 3 6X, and 2 7X [4] Global Expansion - The company plans to build overseas production capacity for 15GWh of energy storage products and 50GW of inverter equipment, which is expected to enhance its global competitiveness [1]