Sunshine Power Co., Ltd. is a national key high-tech enterprise focusing on R&D, production, sales and service of new energy power equipment such as solar energy, wind energy, energy storage, hydrogen energy, and electric vehicles. Since its establishment in 1997, the company has been committed to the development and production of photovoltaic system equipment with photovoltaic inverters as the core, providing first-class photovoltaic system solutions for users around the world, so that everyone can enjoy clean electricity. Over the past 20 years of rapid development, the company has been committed to independent innovation in power electronics and electric energy conversion technology in the field of new energy, and many technologies have reached the leading international level. In recent years, the company has also successively laid out new businesses such as key components for new energy vehicles, microgrid energy storage, smart energy, and hydrogen production from new energy sources, and has made great strides. The company's main products include photovoltaic inverters, wind power converters, energy storage systems, surface photovoltaic systems, new energy vehicle drive systems, charging equipment, renewable energy hydrogen generation systems, and smart energy operation and maintenance services. The company is committed to providing world-class clean energy full life cycle solutions.
Build corporate barriers from multiple perspectives of technology, qualifications, and brands. As the core equipment in photovoltaic power generation systems, photovoltaic inverters are a technology-intensive industry, requiring a long period of practical exploration and technical accumulation in terms of product design level, manufacturing process, device selection, etc.; in addition, with technological upgrades, photovoltaic inverters require not only advanced hardware design and manufacturing levels, but also the development of accurate algorithms as software to match the operation and use of products, reflecting certain technical barriers. Furthermore, technical performance such as reliability, conversion efficiency, and input voltage range of photovoltaic inverters directly determine the utilization rate and return of photovoltaic power generation systems. In major global markets, each country has its own certification system for the main qualification levels of photovoltaic inverters, such as domestic CQC certification, North American ETL certification, European CE certification, etc. The photovoltaic industry is currently in a period of rapid development. The level of competition within the industry will gradually intensify, and the market's selection of products will favor brands with rich application experience in the industry. As the key equipment in solar photovoltaic systems, photovoltaic inverters require high technical standards and strict selection of suppliers. Only with years of accumulation and good market reputation in the inverter industry can we gain the trust of customers. Therefore, once customers accept and use a certain brand, they will maintain a long-term, stable cooperative relationship, and use a high level of loyalty. Solar Power's core product, photovoltaic inverters, are sold in batches to more than 170 countries and regions around the world. In 2023, the global delivery volume of photovoltaic inverters was 130 GW, leading the world in delivery volume.
The company expanded to energy storage system integrators, and overseas advantages are obvious. In 2023, the company delivered 10.5 GWh of energy storage systems globally, ranking first among Chinese companies for eight consecutive years. As one of the earliest enterprises involved in the field of energy storage in China, Sunshine Power's energy storage business relies on the world's leading power electronics, electrochemistry, and power grid support “three-electricity fusion” technology to build professional energy storage systems, focusing on lithium battery energy storage system R&D, production, sales and service, providing auxiliary energy grid connection, power frequency modulation, demand-side response, microgrids, household energy storage system solutions, etc., and is a world-class supplier of energy storage system solutions. The company ranked first in the shipment volume of energy storage PCS and energy storage systems in overseas markets in 2023. Currently, the company's energy storage systems are widely used in mature electricity markets such as the US, the UK, and Germany, continuously strengthening the deep integration of wind and solar storage. There was not a single safety incident in any of the participating energy storage projects, and extensive application experience has been accumulated in the fields of frequency modulation and peak modulation, auxiliary renewable energy grids, microgrids, industry, commerce, and household energy storage.
Investment advice: We expect the company's revenue for 2024-2026 to be 902.92/1100.06/130.21 billion yuan, respectively, and the PE corresponding to the closing price on May 27 will be 13.10X/11.41X/10.55X, respectively. We selected Shangneng Electric, Goodwell, Jinlang Technology, Deye Co., Ltd., and Hewang Electric as comparable companies. The average PE for 2024-2026 was 19.66X/14.83X/11.82X, respectively. As a leading inverter company, the company has obvious advantages in scale and channel. The energy storage business opened up a new growth pole, covered for the first time, and gave the company a “buy” rating.
Risk warning: risk of changes in industry policies, risk of price fluctuations in the industrial chain, risk of insufficient terminal demand.