Sungrow Power Supply (SZSE:300274) - Share price, News & Analysis

Q: What is the Fair Price of 300274 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

300274 (CN¥128.15) is trading above our estimate of [[fair value]] (CN¥43.69)

300274 fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	6/6
Past Performance	1/6
Financial Health	4/6
Dividends	0/6

300274 Stock Overview

Sungrow Power Supply Co., Ltd. researches, develops, produces, sells, and services solar, wind, and other energy storage equipment worldwide.

Rewards

Earnings are forecast to grow 34.16% per year

Risk Analysis

Highly volatile share price over the past 3 months

High level of non-cash earnings

Profit margins (6.3%) are lower than last year (10.5%)

Sungrow Power Supply Competitors

EVE Energy

SZSE:300014

CN¥182.6b

TBEA

SHSE:600089

CN¥90.9b

Suzhou Maxwell Technologies

SZSE:300751

CN¥78.3b

Gongniu Group

SHSE:603195

CN¥87.0b

Price History & Performance

Summary of all time highs, changes and price drops for Sungrow Power Supply
Historical stock prices
Current Share Price	CN¥128.15
52 Week High	CN¥178.98
52 Week Low	CN¥56.01
Beta	1.62
1 Month Change	22.63%
3 Month Change	78.23%
1 Year Change	-17.03%
3 Year Change	1,175.12%
5 Year Change	938.49%
Change since IPO	2,291.74%

Shareholder Returns

	300274	CN Electrical	CN Market
7D	-1.3%	-1.7%	1.2%
1Y	-17.0%	0.5%	-11.1%

Return vs Industry: 300274 underperformed the CN Electrical industry which returned 0.5% over the past year.

Return vs Market: 300274 underperformed the CN Market which returned -11.1% over the past year.

Price Volatility

Is 300274's price volatile compared to industry and market?
300274 volatility
300274 Average Weekly Movement	10.4%
Electrical Industry Average Movement	7.4%
Market Average Movement	6.0%
10% most volatile stocks in CN Market	9.2%
10% least volatile stocks in CN Market	3.9%

Stable Share Price: 300274 is more volatile than 90% of CN stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: 300274's weekly volatility (10%) has been stable over the past year, but is still higher than 75% of CN stocks.

About the Company

Founded	Employees	CEO	Website
1997	6,726	Ren Xian Cao	https://www.en.sungrowpower.com

Sungrow Power Supply Co., Ltd. researches, develops, produces, sells, and services solar, wind, and other energy storage equipment worldwide. The company offers photovoltaic inverters, wind power converters, energy storage systems, new energy vehicle drive systems, and water surface photovoltaic equipment; accessories and monitors; and maintenance services, as well as engages in smart energy operation business. Sungrow Power Supply Co., Ltd.

Sungrow Power Supply Fundamentals Summary

How do Sungrow Power Supply's earnings and revenue compare to its market cap?
300274 fundamental statistics
Market Cap	CN¥176.12b
Earnings (TTM)	CN¥1.61b
Revenue (TTM)	CN¥25.36b

118.4x

P/E Ratio

7.5x

P/S Ratio

Is 300274 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
300274 income statement (TTM)
Revenue	CN¥25.36b
Cost of Revenue	CN¥19.91b
Gross Profit	CN¥5.44b
Other Expenses	CN¥3.84b
Earnings	CN¥1.61b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.08
Gross Margin	21.47%
Net Profit Margin	6.34%
Debt/Equity Ratio	25.6%

How did 300274 perform over the long term?

See historical performance and comparison

Dividends

0.09%

Current Dividend Yield

10%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 300274 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 300274?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 300274. This is calculated by dividing 300274's market cap by their current preferred multiple.
What is 300274's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CN¥176.12b

300274 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	6.8x
Enterprise Value/EBITDA	84.7x
PEG Ratio	3.5x

Price to Earnings Ratio vs Peers

How does 300274's PE Ratio compare to its peers?

300274 PE Ratio vs Peers

The above table shows the PE ratio for 300274 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	55.2x
300014 EVE Energy	67.2x	46.3%	CN¥182.6b
600089 TBEA	11.6x	-2.1%	CN¥90.9b
300751 Suzhou Maxwell Technologies	115.1x	34.7%	CN¥78.3b
603195 Gongniu Group	30.8x	15.9%	CN¥87.0b
300274 Sungrow Power Supply	118.4x	34.2%	CN¥176.1b

Price-To-Earnings vs Peers: 300274 is expensive based on its Price-To-Earnings Ratio (118.4x) compared to the peer average (55.2x).

Price to Earnings Ratio vs Industry

How does 300274's PE Ratio compare vs other companies in the CN Electrical Industry?

Price-To-Earnings vs Industry: 300274 is expensive based on its Price-To-Earnings Ratio (118.4x) compared to the CN Electrical industry average (40.6x)

Price to Earnings Ratio vs Fair Ratio

What is 300274's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

300274 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	118.4x
Fair PE Ratio	49.8x

Price-To-Earnings vs Fair Ratio: 300274 is expensive based on its Price-To-Earnings Ratio (118.4x) compared to the estimated Fair Price-To-Earnings Ratio (49.8x).

Share Price vs Fair Value

What is the Fair Price of 300274 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 300274 (CN¥128.15) is trading above our estimate of fair value (CN¥43.69)

Significantly Below Fair Value: 300274 is trading above our estimate of fair value.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Future Growth

How is Sungrow Power Supply forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

6/6

Future Growth Score 6/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

34.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 300274's forecast earnings growth (34.2% per year) is above the savings rate (3.2%).

Earnings vs Market: 300274's earnings (34.2% per year) are forecast to grow faster than the CN market (24.5% per year).

High Growth Earnings: 300274's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 300274's revenue (27% per year) is forecast to grow faster than the CN market (17.8% per year).

High Growth Revenue: 300274's revenue (27% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 300274's Return on Equity is forecast to be high in 3 years time (22.5%)

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Past Performance

How has Sungrow Power Supply performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

22.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 300274 has a high level of non-cash earnings.

Growing Profit Margin: 300274's current net profit margins (6.3%) are lower than last year (10.5%).

Past Earnings Growth Analysis

Earnings Trend: 300274's earnings have grown significantly by 22.1% per year over the past 5 years.

Accelerating Growth: 300274's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 300274 had negative earnings growth (-26.3%) over the past year, making it difficult to compare to the Electrical industry average (-1.2%).

Return on Equity

High ROE: 300274's Return on Equity (10.1%) is considered low.

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Financial Health

How is Sungrow Power Supply's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 300274's short term assets (CN¥37.3B) exceed its short term liabilities (CN¥24.1B).

Long Term Liabilities: 300274's short term assets (CN¥37.3B) exceed its long term liabilities (CN¥2.8B).

Debt to Equity History and Analysis

Debt Level: 300274 has more cash than its total debt.

Reducing Debt: 300274's debt to equity ratio has increased from 7.1% to 25.6% over the past 5 years.

Debt Coverage: 300274's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 300274 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Sungrow Power Supply current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

0.086%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 300274's dividend (0.086%) isn’t notable compared to the bottom 25% of dividend payers in the CN market (0.46%).

High Dividend: 300274's dividend (0.086%) is low compared to the top 25% of dividend payers in the CN market (1.91%).

Stability and Growth of Payments

Stable Dividend: 300274 is not paying a notable dividend for the CN market, therefore no need to check if payments are stable.

Growing Dividend: 300274 is not paying a notable dividend for the CN market, therefore no need to check if payments are increasing.

Earnings Payout to Shareholders

Earnings Coverage: 300274 is not paying a notable dividend for the CN market.

Cash Payout to Shareholders

Cash Flow Coverage: 300274 is paying a dividend but the company has no free cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average board tenure

CEO

Ren Xian Cao (54 yo)

no data

Tenure

CN¥830,000

Compensation

Mr. Ren Xian Cao serves as the Chairman of Sungrow Power Supply Co., Ltd and served as its President. Mr. Cao serves as chairman of Hefei Source of Electric Information Technology Co., Ltd. Mr. Cao serves...

Board Members

Experienced Board: 300274's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/08/09 00:00
End of Day Share Price	2022/08/09 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31