Sungrow Power Supply Co Ltd Class A

300274: XSHE (CHN)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	¥18.00	Hjyr	Ngrxtgmf

Sungrow Power Supply Earnings: Strong Shipment Growth but Selling Price Fell More Than Expected

Cheng Wang

Aug 26, 2024

Sungrow’s first-half results beat market expectations but are shy of our estimates. Despite strong shipment growth, average selling prices fell more than we assumed. After factoring this in, we reduce our estimates for revenue by 6%-11% and net income by 9%-13% for 2024-28. We now project CNY 12.3 billion net profit in 2024, which still represents a decent 30% year-on-year growth. Following these adjustments, we cut our fair value estimate by 6% to CNY 63. With the share price up 5% on the market beat, we see the shares as fairly valued.

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