\u3000\u30003 Anhui Fuhuang Steel Structure Co.Ltd(002743) 00274)
Event: Sungrow Power Supply Co.Ltd(300274) released the annual report of 2021 and the first quarterly report of 2022.
The business scale continued to expand rapidly. Affected by the impact of short-term events, the profit in 2021 was lower than expected. In 2021, the company achieved an operating revenue of 24.137 billion yuan, a year-on-year increase of 25.15%, and a net profit attributable to the parent company of 1.583 billion yuan, a year-on-year decrease of 19.01%, of which 2021q4 achieved a revenue of 8.763 billion yuan, a year-on-year increase of 18.79%, and a net profit attributable to the parent company of 78 million yuan, a year-on-year decrease of 89.73%. Dragged down by the energy storage business, the gross profit margin in a single quarter was only 13.18%, a year-on-year decrease of 7.11 PCTs. In the first quarter of 2022, the company achieved an operating revenue of 4.568 billion yuan, a year-on-year increase of 36.48%, and a net profit attributable to the parent company of 411 million yuan, a year-on-year increase of 6.26%. In a single quarter, the gross profit margin rebounded to 29.48%, basically unchanged year-on-year, and the net profit margin was 9.25%, a year-on-year decrease of 2.41pcts. Due to the rise in the price of raw materials, the profitability declined slightly.
The leading position of inverter is stable, accounting for more than 30% of the market, actively layout channel business and optimize product structure. In 2021, the company shipped 47gw of photovoltaic inverters worldwide, including 18gw in China and 29gw overseas, accounting for more than 30% of the global market. As the global leader of inverters, the company actively laid out the globalization strategy, and has laid out 10GW inverter capacity in India and Thailand respectively. At present, in order to optimize the product layout, the company actively arranges the channel business. In 2021, the performance in the Japanese market, the European channel market and China’s distributed market has increased significantly. Among them, the global shipment of inverter channel exceeded 500000 units in 2021. The expansion of subsequent channel business is expected to further strengthen brand building and improve the profitability of the unit.
The energy storage business is gradually developed, and the downstream application fields are fully covered. The company is the world’s leading energy storage system integration manufacturer. In 2021, the delivery volume of the company’s energy storage system achieved geometric growth. In that year, the global delivery volume reached 3gwh. According to Bloomberg Nef statistics, a total of 10GW / 22gwh energy storage projects were developed in 2021, which means that the market share of Sungrow Power Supply Co.Ltd(300274) energy storage system is about 13.64%, and the leading position continues to be strengthened. In addition to making great efforts in industry and commerce, power grid and power supply, the company will gradually develop household and industrial energy storage systems in 2021, and launch 5 ~ 10kW / 9.6 ~ 102.4kwh household energy storage systems and 50KW ~ 1MW / 2 ~ 5h distributed energy storage systems, which have been applied in batches in the global market, so as to realize the full coverage of downstream application fields of energy storage.
The power station development aims at China’s distributed development opportunities, and the installed capacity of household has increased significantly year-on-year. Power station development is one of the company’s traditional main businesses. With the support of China’s whole county development and other national energy strategies last year, the company innovated and launched the “home sunshine” cooperation and co construction business model, and worked with central state-owned enterprises to jointly promote the development of residential roof distributed photovoltaic power station projects. The annual installed capacity of Yangguang home photovoltaic increased by more than 500% year-on-year in 2021, ranking the first camp for household use.
Profit forecast: the net profit attributable to the parent company is expected to be RMB 3.022/4.093/4.755 billion from 2022 to 2024, corresponding to 35.4/26.2/22.5 times of the valuation, maintaining the rating of “overweight”.
Risk tip: the industry demand is less than expected.
