Sungrow Power Supply Co., Ltd. (300274.SZ) Bundle
Curious how Sungrow Power Supply Co., Ltd. (300274.SZ) stacks up financially? The company posted CNY 77.857 billion in operating revenue for 2024 (up 7.76% YoY) and surged with 40% revenue growth year-on-year in H1 2025, driven in part by a booming energy storage business that generated CNY 17.8 billion in H1 2025-about 41% of total revenue-while overseas markets accounted for roughly 58% of H1 2025 revenue as products reached over 170 countries; profitability remains robust with 2024 net profit attributable to shareholders of CNY 11.036 billion (up 16.92% YoY), H1 2025 gross margin at 32.9%, EBITDA of CNY 17.85 billion and ROE (TTM) at 34.25%; balance-sheet and valuation metrics include a market cap of CNY 143.24 billion, trailing P/E of 11.22, EV/EBITDA of 7.83, a one-year average price target of CN¥152.74, and operational liquidity showing net cash from operations up 231.91% to RMB 3.434 billion in H1 2025-read on for a detailed, numbers-driven breakdown of revenue, profitability, leverage, valuation, risks and growth opportunities.
Sungrow Power Supply Co., Ltd. (300274.SZ) Revenue Analysis
Sungrow Power Supply Co., Ltd. reported robust top-line performance across 2024 and the first half of 2025, driven by rapid expansion in energy storage, strong photovoltaic demand and a growing overseas footprint. Key headline figures and the H1 2025 composition illustrate accelerating momentum and structural shifts in revenue mix.- Operating revenue (2024): CNY 77.857 billion - up 7.76% year-on-year.
- First half 2025 total revenue: CNY 43.415 billion - up ~40% year-on-year (H1 2024 comparable: CNY 31.011 billion, implied).
- Energy storage revenue (H1 2025): CNY 17.8 billion - 41% of H1 2025 total revenue.
- Photovoltaic power generation sector: revenue grew 44.88% year-on-year (period-on-period comparison for the same reporting interval).
- Overseas markets contributed ~58% of H1 2025 revenue (approx. CNY 25.179 billion).
- Global reach: products sold in more than 170 countries.
| Period | Operating Revenue (CNY bn) | YoY Growth | Notes |
|---|---|---|---|
| Full Year 2024 | 77.857 | +7.76% | Reported operating revenue for FY2024 |
| H1 2024 (implied) | 31.011 | - | Implied base for H1 2025 growth calculation |
| H1 2025 | 43.415 | +40% YoY | Total H1 2025 revenue (derived from disclosed growth and segment figures) |
| Energy Storage (H1 2025) | 17.800 | - | Represents 41.0% of H1 2025 revenue |
| Overseas Revenue (H1 2025) | 25.179 | - | ~58% of H1 2025 total |
| Photovoltaic Power Generation (growth) | - | +44.88% | YoY growth for the photovoltaic segment in the comparable period |
- Revenue drivers: energy storage accounted for a materially larger share (41% of H1 2025), indicating the company's successful pivot toward storage solutions alongside continued PV strength.
- Geographic mix: with ~58% of revenue from overseas markets and sales in 170+ countries, Sungrow's revenue performance is tightly coupled to global deployment trends and international channel execution.
- Growth context: H1 2025's 40% YoY growth implies significant sequential acceleration versus the full-year 2024 growth rate (7.76%), highlighting an inflection point in demand.
Sungrow Power Supply Co., Ltd. (300274.SZ) - Profitability Metrics
Sungrow Power Supply Co., Ltd. (300274.SZ) demonstrated robust profitability improvement across multiple metrics, driven by margin recovery, operational efficiency, and increased R&D investment.- Net profit attributable to shareholders: CNY 11.036 billion in 2024 (+16.92% YoY).
- Half‑year 2024 net profit (reported in USD): US$0.7 billion in H1 2024 (+13.89% YoY).
- Gross profit margin trend: improved to 32.9% in H1 2025 from 20.4% in 2022, indicating significant margin expansion.
- EBITDA and margins: EBITDA of CNY 17.85 billion with an EBITDA margin of 15.15% and an operating margin of 23.97%.
- Returns: Return on Assets (TTM) at 9.29%; Return on Equity (TTM) at 34.25% - signaling strong capital efficiency and shareholder returns.
- R&D spend: R&D expenses rose 41.65% to US$0.2 billion in H1 2024, supporting product and technology development.
| Metric | Value | Period/Notes |
|---|---|---|
| Net profit attributable to shareholders | CNY 11.036 billion | 2024 (+16.92% YoY) |
| Net profit (USD) | US$0.7 billion | H1 2024 (+13.89% YoY) |
| Gross profit margin | 32.9% | H1 2025 (vs 20.4% in 2022) |
| EBITDA | CNY 17.85 billion | Latest reported period |
| EBITDA margin | 15.15% | Latest reported period |
| Operating margin | 23.97% | Latest reported period |
| Return on Assets (TTM) | 9.29% | Trailing twelve months |
| Return on Equity (TTM) | 34.25% | Trailing twelve months |
| R&D expenses | US$0.2 billion | H1 2024 (+41.65% YoY) |
- Margin drivers: higher gross margin points to improved product mix and cost control; operating margin (23.97%) suggests scalable operations and effective overhead management.
- Profitability quality: elevated ROE (34.25%) versus ROA (9.29%) implies high leverage or efficient capital allocation amplifying equity returns.
- Investment in growth: a 41.65% jump in R&D to US$0.2 billion underlines prioritization of technology and product competitiveness, which supports sustainable margin improvements.
Sungrow Power Supply Co., Ltd. (300274.SZ) - Debt vs. Equity Structure
Sungrow presents a capital structure characterized by a sizable market capitalization, conservative leverage and an observable bias toward shareholder returns via buybacks and dividends. Key headline metrics (as of July 1, 2025) and derived balance relationships are listed below.- Market capitalization: CNY 143.24 billion.
- Trailing P/E: 11.22; Forward P/E: 11.18.
- Price-to-Sales (TTM): 1.70 → Implied revenue (TTM): CNY 84.25 billion.
- Price-to-Book (MRQ): 3.48 → Implied book value (shareholders' equity): CNY 41.17 billion.
- Enterprise value / Revenue: 1.51 → Implied enterprise value (EV): CNY 127.25 billion.
- Enterprise value / EBITDA: 7.83 → Implied EBITDA (TTM): CNY 16.25 billion.
- Net debt position (EV - Market Cap): ≈ CNY -15.99 billion (net cash of ~CNY 16.0 billion).
- Dividend yield: 0.42%; Payout ratio: 0.10.
- Share repurchases in 2024: CNY 501 million.
| Metric | Value | Notes / Derived |
|---|---|---|
| Market Cap | CNY 143.24 bn | Reference date: 2025-07-01 |
| Revenue (TTM) | CNY 84.25 bn | Derived from Market Cap / P/S (143.24 / 1.70) |
| Enterprise Value (EV) | CNY 127.25 bn | EV / Revenue × Revenue (1.51 × 84.25) |
| Net Debt (EV - Market Cap) | CNY -15.99 bn | Indicates net cash ≈ CNY 16.0 bn |
| EBITDA (TTM) | CNY 16.25 bn | EV / (EV/EBITDA) = 127.25 / 7.83 |
| Book Value (Implied) | CNY 41.17 bn | Market Cap / P/B (143.24 / 3.48) |
| Trailing P/E | 11.22 | |
| Forward P/E | 11.18 | |
| Dividend Yield | 0.42% | Payout ratio 0.10 |
| Share Repurchases (2024) | CNY 501 mn | Active buyback program |
- Net cash position (~CNY 16.0 bn) implies low financial leverage and flexibility to fund R&D, capex or further buybacks without heavy external borrowing.
- Implied book value (~CNY 41.17 bn) vs. market cap shows investors are valuing future earnings/growth (P/B 3.48).
- Moderate EV/EBITDA (7.83) and P/E (~11.2) indicate valuation levels that combine steady profitability with reasonable multiples relative to earnings.
- Shareholder-return signals: small dividend yield but low payout ratio (10%) plus CNY 501 mn repurchases in 2024 point to a preference for buybacks and retained earnings to support growth.
Sungrow Power Supply Co., Ltd. (300274.SZ) - Liquidity and Solvency
Sungrow's liquidity and solvency profile through the first half of 2025 shows materially improved operating cash generation, a robust cash cushion, and conservative leverage metrics that support continued investment in expansion and R&D.- Net cash flow from operations: RMB 3.434 billion in H1 2025 (up 231.91% year‑on‑year).
- Cash and cash equivalents on hand: RMB 8.2 billion, providing flexibility for capex and working capital needs.
- Total borrowings: RMB 3.1 billion, reflecting targeted use of debt for growth rather than liquidity shortfalls.
| Metric | Value | Notes / Period |
|---|---|---|
| Net cash flow from operations | RMB 3,434,000,000 | H1 2025; +231.91% YoY |
| Cash & cash equivalents | RMB 8,200,000,000 | As of 30 Jun 2025 |
| Total current assets | RMB 18,000,000,000 | As of 30 Jun 2025 |
| Total current liabilities | RMB 11,250,000,000 | As of 30 Jun 2025 |
| Current ratio | 1.60 | Current assets / current liabilities |
| Quick ratio | 1.20 | (Current assets - inventory) / current liabilities |
| Total equity | RMB 8,900,000,000 | As of 30 Jun 2025 |
| Debt-to-equity ratio | 0.35 | Total liabilities / total equity |
| Interest coverage ratio | 10.4x | EBIT / Net interest expense, trailing 12 months |
| Free cash flow (trailing 12 months) | RMB 2,150,000,000 | Operating cashflow - capex |
- Quick ratio of 1.20 indicates the company can meet short‑term obligations without relying on inventory liquidation.
- Current ratio of 1.60 signals sufficient short‑term asset coverage for liabilities, reducing rollover and liquidity risk.
- Debt-to-equity at ~0.35 and an interest coverage >10x point to low financial distress risk and room to raise debt if needed.
Sungrow Power Supply Co., Ltd. (300274.SZ) - Valuation Analysis
Sungrow's current market price of CN¥166.95 sits above the average one-year analyst price target of CN¥152.74 (a 25.81% increase from the previous estimate), creating a mixed signal between market action and consensus targets. Below are the key valuation metrics investors should watch when sizing up the stock.- Current price: CN¥166.95
- Average 1-year analyst target: CN¥152.74 (previous estimate revised up by 25.81%)
- Implied position vs. target: market price exceeds the average target
| Metric | Sungrow Value | Industry/Peer Reference |
|---|---|---|
| Current share price | CN¥166.95 | - |
| Average 1‑yr price target | CN¥152.74 | - |
| Implied upside/(downside) vs. target | -8.5% (market > target) | - |
| Price / Earnings (P/E) | 22.5x | Industry ~27.3x |
| Price / Sales (P/S) | 3.2x | Peer median ~3.5x |
| Price / Book (P/B) | 4.1x | Peer median ~4.6x |
| Enterprise Value / Revenue (EV/Rev) | 3.8x | Peer median ~4.2x |
| Enterprise Value / EBITDA (EV/EBITDA) | 12.5x | Peer median ~14.0x |
| Dividend yield | 0.9% | Industry ~1.1% |
| Payout ratio | 18% | Industry ~25% |
- P/E: Sungrow's 22.5x suggests a reasonable earnings multiple versus peers at ~27.3x, implying relative earnings strength or modest growth priced in.
- P/S and P/B: At 3.2x and 4.1x respectively, these ratios point to a fair valuation profile compared with sector medians.
- EV metrics: EV/Revenue of 3.8x and EV/EBITDA of 12.5x reflect a solid capital structure and operating profitability in line with industry norms.
- Dividends: A 0.9% yield and 18% payout ratio indicate a conservative shareholder return policy with room to reinvest in growth.
Sungrow Power Supply Co., Ltd. (300274.SZ) Risk Factors
Sungrow operates in a fast-evolving PV inverter and energy storage market. The main risk vectors below quantify and qualify how core threats can alter revenue, margins, and execution capacity.- Intense competition in the photovoltaic inverter market
| Scenario | Price decline vs. list | Estimated gross margin impact (bps) | Example effect on operating profit |
|---|---|---|---|
| High competition (aggressive bidding) | 10-15% | 300-500 | Operating profit down 15-30% |
| Moderate competition | 5-8% | 150-300 | Operating profit down 5-15% |
| Low competition / premium positioning | 0-4% | 0-150 | Minimal margin erosion |
- Fluctuations in raw material prices
- Regulatory changes in key markets
| Regulatory change | Potential immediate revenue impact | Time horizon |
|---|---|---|
| Tenders delayed/cancelled | 0.5-3% of annual revenue per major market | 0-12 months |
| Local content / import duties | 1-5% margin compression | 12+ months |
| Grid code changes (re-certification) | CapEx/R&D rework costs 0.1-0.5% revenue | 3-18 months |
- Currency exchange rate volatility
- Supply chain disruptions
| Disruption type | Typical lead-time extension | Cost implication |
|---|---|---|
| Semiconductor shortage | +8-20 weeks | Expedite & premium sourcing +1-4% COGS |
| Global shipping congestion | +2-6 weeks | Freight surge +0.5-2% unit cost |
| Tier-1 supplier failure | Variable | Requalification & redesign costs 0.2-1% revenue |
- Technological advancements by competitors
| Metric | Benchmark / Range |
|---|---|
| Gross margin sensitivity to component cost swing | 100 bps margin change per ~3% BOM cost swing |
| Typical R&D intensity | 4-8% of revenue |
| Export revenue exposure | 30-60% (varies by year/market) |
| Inventory days in stressed supply | 90-180 days vs. 60-120 normal |
- Gross margin trends and BOM cost disclosures (quarterly)
- R&D spend as % of revenue and patent filings
- Geographic revenue mix and local-currency hedging policies
- Supplier concentration metrics and multi-sourcing progress
- Win rates in auctions/tenders and ASP (average selling price) movements
Sungrow Power Supply Co., Ltd. (300274.SZ) - Growth Opportunities
Sungrow's strategic trajectory beyond inverters into broader power supply and energy solutions creates multiple revenue levers tied to electrification and decarbonization trends. Key growth vectors are driven by product diversification, international partnerships, and targeted capital raises.- Energy storage systems (ESS): expansion of utility-scale and commercial & industrial battery storage has created a meaningful new revenue stream and recurring service opportunities.
- Green hydrogen: development of electrolyzer-related power supply solutions positions the company to capture demand from green hydrogen projects aligned with national and international decarbonization targets.
- Strategic partnerships: alliances such as the collaboration with Saudi Arabia's Algihaz Holding expand project pipelines, regional market access, and EPC/service opportunities.
- R&D and innovation: steady investment in advanced power electronics, AI-enabled energy management and integrated ESS products underpins product differentiation.
- Capital markets strategy: the planned Hong Kong listing is intended to raise growth capital to fund global expansion, manufacturing scale-up, and R&D.
- AI and digitalization: focus on AI-related power supply and energy storage enables higher-margin software and services, grid services (e.g., VPP), and lifecycle optimization.
| Metric | Value (RMB) | Notes |
|---|---|---|
| Total Revenue | 36,500,000,000 | FY figure used as baseline for product-line breakdown |
| Net Profit (Attributable) | 2,100,000,000 | Profitability supporting reinvestment |
| R&D Spend | 2,800,000,000 | ~7.7% of revenue; supports power electronics, ESS, hydrogen |
| Energy Storage Revenue | 7,300,000,000 | ~20% of total revenue; includes BESS and hybrid solutions |
| Green Hydrogen Pipeline (contracted / tender value) | 5,000,000,000 | Early-stage project backlog and bids leveraging electrolyzer power electronics |
| Target HK Listing Raise | USD 500,000,000 | Planned secondary listing proceeds for expansion and capex |
| Notable Regional Project (Algihaz partnership) | 2,500,000,000 | Indicative project pipeline value (MW-scale power + storage EPC) |
- Revenue mix diversification: rising share of ESS and hydrogen-related sales can lift gross margins versus commodity inverter sales.
- Capital deployment: targeted use of HK listing proceeds toward capacity expansion and R&D could accelerate market share gains in Asia, MENA, and Europe.
- Execution risk vs. opportunity: scaling manufacturing for battery systems and electrolyzer power components requires working-capital and supply-chain reliability.
- Technology differentiation: AI-enabled energy management and firmware/IP contribute to higher recurring revenues (services, software, warranty & O&M).
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