Morningstar

Sungrow Power Supply Co Ltd Class A 300274

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Stock XSHE Rating as of
¥99.58 +14.38 (16.88%)
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As of Delayed Price Closed

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Sungrow Power Supply Earnings: Strong Shipment Growth but Selling Price Fell More Than Expected

Cheng Wang

Sungrow’s first-half results beat market expectations but are shy of our estimates. Despite strong shipment growth, average selling prices fell more than we assumed. After factoring this in, we reduce our estimates for revenue by 6%-11% and net income by 9%-13% for 2024-28. We now project CNY 12.3 billion net profit in 2024, which still represents a decent 30% year-on-year growth. Following these adjustments, we cut our fair value estimate by 6% to CNY 63. With the share price up 5% on the market beat, we see the shares as fairly valued.

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Price vs Fair Value

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300274 is trading at a 75% premium.
Price
¥85.20
Fair Value
¥81.00
Uncertainty
Very High
1-Star Price
¥925.82
5-Star Price
¥59.70
Economic Moat
Jdr
Capital Allocation
Qlmkthpbqd

Bulls Say, Bears Say

Bulls

Sungrow will benefit from the sharp decline in solar module prices, which should boost solar installations and hence demand for solar inverters.

Bears

Demand for solar power and energy storage systems in Europe will soften as electricity price normalizes, and that will weigh on Sungrow’s sales.

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News

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Trading Information

Previous Close Price
¥85.20
Day Range
¥86.68–99.96
52-Week Range
¥53.57–99.96
Bid/Ask
¥99.57 / ¥99.58
Market Cap
¥206.45 Bil
Volume/Avg
65.6 Mil / 23.6 Mil

Key Statistics

Price/Earnings (Normalized)
17.53
Price/Sales
2.71
Dividend Yield (Trailing)
1.13%
Dividend Yield (Forward)
1.13%
Total Yield
1.13%

Company Profile

China-based Sungrow manufactures and sells power supply equipment for the new energy industry. It offers a wide range of products, including solar inverters, energy storage systems, wind power converters, electric vehicle drives, among others. It is one of the largest suppliers of solar inverters and energy storage systems globally. It is also one of the largest new energy project developers in the world. Solar inverters, energy storage systems, and new energy investment and development segment each accounted for 38%, 25%, and 34% of revenue in 2023, respectively.
Sector
Industrials
Industry
Electrical Equipment & Parts
Stock Style Box
Large Growth
Total Number of Employees
13,697
Website
https://www.sungrowpower.com

Competitors

Valuation

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Metric
300274
600438
601012
Price/Earnings (Normalized)
 17.5314.4518.39
Price/Book Value
 5.621.751.88
Price/Sales
 2.710.901.17
Price/Cash Flow
 14.847.029.06
Price/Earnings
300274
600438
601012

Financial Strength

Metric
300274
600438
601012
Quick Ratio
 0.980.961.03
Current Ratio
 1.611.231.41
Interest Coverage
 32.66−6.56−8.18
Quick Ratio
300274
600438
601012

Profitability

Metric
300274
600438
601012
Return on Assets (Normalized)
 11.78%−1.27%−2.19%
Return on Equity (Normalized)
 35.77%−3.73%−5.16%
Return on Invested Capital (Normalized)
 25.50%−1.99%−4.70%
Return on Assets
300274
600438
601012

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