SolaX Power Network Technology (Zhejiang) (688717) 华创证券·2024-05-16 13:02Investment Rating - The report gives a "Recommended" rating for the company with a target price of 80.91 CNY based on a 26x PE for 2024 [1][3][7]. Core Insights - The company is a well-known player in the energy storage sector, focusing on the European household storage market, with approximately 88% of its 2023 revenue coming from Europe [1][6]. - The energy storage products are the main revenue contributors, with energy storage batteries generating 2.347 billion CNY in 2023, accounting for 53% of total revenue, despite a 6% year-on-year decline [1][30]. - The company is expected to benefit from the recovery of inventory depletion in Europe, which is anticipated to contribute significantly to its performance [1][6]. Summary by Sections Company Overview - The company specializes in photovoltaic energy storage systems and products, offering a range of products including energy storage inverters and batteries, and has a strong focus on technology development [12][29]. - The company has a stable shareholding structure, with the actual controllers holding 35.06% of the shares, and has implemented employee stock ownership plans to enhance management stability [15][16]. Business Performance - The company experienced a compound annual growth rate (CAGR) of 84.19% in revenue from 2019 to 2023, with total revenue of 4.473 billion CNY in 2023, a slight decline of 3.01% year-on-year [18][20]. - The energy storage business, which includes energy storage inverters and batteries, accounted for about 80% of total revenue, with energy storage inverters contributing 24% and batteries 53% in 2023 [20][30]. Market Potential - The energy storage market in Europe is expected to grow significantly, with estimates suggesting that the market for photovoltaic inverters, energy storage inverters, and energy storage batteries could reach 4.748 trillion CNY by 2025 and 9.342 trillion CNY by 2030 [6][11]. - The company has a market share of approximately 7% globally and around 10% in Europe for household energy storage batteries, indicating substantial room for growth [6][11]. Product Development and Market Expansion - The company is actively expanding its product line and entering new markets, with plans to launch commercial energy storage inverters and other products in 2024 [1][6]. - The company is also making strides in markets outside Europe, including Japan, where it has established a sales agreement with Sharp Energy [1][6].