Main points of investment:

Event: the company released a report for the third quarter of 2023 that its revenue in the first three quarters of 2023 was 4.068 billion yuan, an increase of 48.51 percent over the same period last year, and its net profit was 692 million yuan, an increase of 54.88 percent over the same period last year. It deducted 675 million yuan from non-parent net profit, an increase of 65.33 percent over the same period last year.

The data center business is steadily rising, and the growth rate of energy storage revenue is expected to slow slightly:

(1) the overall revenue in the first three quarters of 2023 is 4.068 billion yuan, of which we estimate that the revenue of the new energy industry is about 2.2 billion yuan, of which energy storage revenue is about 1.6 billion yuan, photovoltaic revenue is about 400 million yuan, and data center revenue is about 1.8 billion yuan.

(2) in 2023, Q3 achieved an overall revenue of 1.246 billion yuan, an increase of 2.25% over the same period last year, and a net profit of 191 million yuan, a decrease of 16.57% over the same period last year. The net profit of deducting non-return was 187 million yuan, a decrease of 10.97% over the same period last year. We expect 2023Q3 revenue growth to slow, profit decline may be affected by European household storage inventory, the company's delivery progress slowed slightly, the overall revenue recognition progress will be affected.

Profit forecast and investment suggestion: according to the situation of the first three quarters of the company, we partially adjust the revenue of the company's corresponding business (mainly energy storage products). It is estimated that the company's revenue from 2023 to 2025 will be 64.2 pound 81.8 / 10.22 billion yuan (the previous value is 87.0 pound 120.8 / 16.3 billion yuan), and the net profit of return to the mother will reach 9.1 pound 11.3 / 1.38 billion yuan (the previous value 11.2 pound 15.0 / 2.04 billion yuan). Corresponding to the current stock price PE is 17.5 PE 14.2 pound 11.6 times, in view of the company's overseas energy storage business layout, the future is still expected to be accompanied by Europe and other places to achieve rapid growth, giving the company 2024 25 times PE, corresponding to the target price of 48.11 yuan per share, maintaining the "buy" rating.

Risk hints: domestic industrial policy promotes less than expected risk; overseas energy storage demand falls short of expected risk; competition pattern worsens risk; raw material supply is insufficient; negative impact risk of performance below expectations on valuation.