Gelonghui, May 30 | Changjiang Securities Research Report indicates that the performance of Sunshine Power (300274.SZ) continued to exceed expectations in 2023. The company achieved net profit of 9.44 billion yuan for the whole year, up 163% year on year, mainly because the profit level exceeded expectations. The gross margin of the 2023 inverter reached 37.9%, up 4.7 pct year on year; the gross margin of the energy storage system reached 37.5%, up 14.2 pcts year on year. Looking further, the reasons why the company's profit level exceeded expectations include not only the company's own cost reduction, optimization of the market structure and product structure, but also “chance” factors such as exchange rates, freight, falling raw material prices, and tight IGBT modules. Subsequently, with the expansion of the market size, the increase in trade barriers, and the advancement of product technology, inverters and large storage systems are expected to maintain high industry barriers, supporting Sunshine Power to have considerable profit margins. Maintain a “buy” rating.