Event: The company released its 2024 annual report and 2025 quarterly report. In 2024, the company achieved revenue of 77.857 billion yuan, an increase of 7.76%; net profit to mother was 11.036 billion yuan, an increase of 16.92%; net profit after deducting non-attributable net profit of 10.693 billion yuan, an increase of 16.03%. Asset impairment losses of 0.78 billion yuan in 2024 are mainly due to inventory price reduction preparations of 0.69 billion yuan, including the early investment of new energy in unstarted power plant projects, as well as depreciation of inventory materials. 24Q4 single quarter: revenue of 27.911 billion yuan, an increase of 8.03%; net profit to mother of 3.437 billion yuan, an increase of 55.05%; net profit after deducting non-return to mother of 3.312 billion yuan, an increase of 54.75%. 25Q1 single quarter: The company achieved revenue of 19.036 billion yuan, an increase of 50.92%; net profit to mother of 3.826 billion yuan, an increase of 82.52%; net profit after deducting non-attributable net profit of 3.676 billion yuan, an increase of 76.46%.
Overseas revenue accounts for about 47%, and the revenue and profitability of energy storage systems are steadily increasing. By product in 2024, PV inverter revenue was 29.127 billion yuan, up 5.33% from the same period, and gross profit margin was 30.90%, or 1.94 pct year on year. In 2024, the company shipped 147 GW of photovoltaic inverters, an increase of 13%; the revenue of the energy storage system was 24.959 billion yuan, an increase of 40.21%, with a gross profit margin of 36.69%, +4.07pct year-on-year. In 2024, the company delivered 28 GWh of energy storage, up 167% year on year; new energy investment and development revenue was 21.003 billion yuan, -15.08%; PV power generation revenue was 1.139 billion yuan, up 100.82%; other revenue was 1.629 billion yuan, up 8.95% year on year.
By region, revenue from mainland China and overseas (including Hong Kong, Macao and Taiwan) was 41.563/36.294 billion yuan, respectively, or +6.90%/+8.76% compared with the same period last year, accounting for 53%/47% of revenue.
The company's 25Q1 net interest rate increased year-on-month.
Gross profit side: The company's gross margin in '24 was -0.41pct to 29.94%; 24Q4 gross profit margin 27.48%, -1.15pct yoy, -2.03pct month-on-month; 25Q1 gross profit margin 35.13%, -1.54 pct yoy, +7.65pct month-on-month.
Rate side: The company's sales/management/R&D/finance rate for 24 years was 4.83%/1.54%/4.06%/0.37%, and the year-on-year change was -2.32pct/+0.33pct/+0.68pct/+0.34pct.
Net interest rate: The company's net interest rate increased 1.17pct to 14.47%; 24Q4 net interest rate 12.68%, up 3.86pct, -1.48pct month-on-month; 25Q1 net interest rate 19.93%, 3.22pct, +7.25pct month-on-month.
Investment advice: Maintain an “Overweight” rating. The company's net profit for 2025-2027 is estimated to be 12.442/14.029/15.358 billion yuan, respectively, +12.7%/+9.5% year-on-year, maintaining the “gain” rating.
Risk warning: Overseas optical storage demand falls short of expectations, risk of policy changes, forecast bias, and valuation risk.
