The 23-year performance achieved rapid growth, and marginal improvement in profitability achieved total revenue of 4.933 billion yuan, YOY +110.93%; net profit to mother of 286 million yuan, YOY +250.48%; net profit after deducting non-return to mother of 276 million yuan, YOY +295.17%. Gross profit margin 19.23%, YOY+1.97pct; net profit margin 5.8%, YOY+2.31pct.

24Q1 achieved revenue of 711 million yuan, YOY +14.71%; net profit to mother of 51.09 million yuan, YOY +39.91%; net profit after deducting non-return to mother of 46.96 million yuan, YOY +46.91%, gross profit margin of 23.6%, net profit margin 7.1%.

23 years of business spin-off:

1. Photovoltaic industry: achieved revenue of 2,879 billion yuan, yoy +135.13%, gross profit margin 20.25%, yoy+0.61pct; of these, photovoltaic inverters achieved sales of 23.5 GW, yoy +132.65%.

2. Energy storage industry: achieved revenue of 1,927 billion yuan, yoy +88.62%, gross profit margin 16.17%, yoy+3.81pct.

3. By region, the company achieved overseas revenue of 690 million yuan in 23 years, yoy +105.75%, and gross profit margin of 24.11%. By the end of '23, the company had completed the layout of major global PV market countries such as the United States, Europe, the Middle East, India, and Southeast Asia, and had obtained strategic partnerships with world-renowned enterprise groups such as TATA, ACWA, and SOFTBANK.

A leading domestic inverter company, we are optimistic about the company's overseas optical storage business development and increase in performance 1) The company's leading position in the photovoltaic and energy storage inverter industry is stable, and inverter shipments have maintained the top ten positions in the world for many years. According to the EESA Energy Storage Leaders Alliance statistics, the company ranked first for three consecutive years.

2) In overseas markets, according to the company's 2024 business plan, as of 2023, the company's high-power energy storage PCS has received multiple orders for 100 megawatt projects in the North American market; sales companies have been set up in Europe, the Middle East, and India, which will focus on the optical storage business in Europe, the Middle East, North America, Southeast Asia, Brazil, etc.

Profit forecasting

The company has a stable leading position in the PV and energy storage PCS market, and achieved rapid growth in performance in 2023; looking forward to the future, we continue to be optimistic about 1) the existing dominant markets in China and India, which follow the needs of the photovoltaic and energy storage industries to achieve steady growth; 2) the overseas market is gradually built up, and it is expected that the overseas market will continue to develop and achieve large-scale sales, bringing increased performance to the company.

Considering the company's 23-year operating situation and ability to continue to develop overseas optical storage markets in the future, we adjusted the company's 24-26 revenue forecast to 72.02, 90.02, 10.983 billion yuan (original value was 12.07 billion yuan in 24 years), and net profit forecast to 5.35, 7.84, and 1,040 million yuan (original value was 749 million yuan in 24 years), yoy +87.3%/+46.4%/+32.7%, corresponding to the current valuation of 19, 13, and 10XPE, maintaining the “buy” rating.

Risk warning: Downstream photovoltaic/energy storage installed demand falls short of expectations, increased competition, rising raw material prices, high risk of accounts receivable, and increased friction in international trade protection.