Sungrow Power Reports 46.49% Increase in Net Profit for 2024 and Proposes 10-for-4 Stock Split with Cash Dividend

Shangneng Electric (300827) disclosed its annual report for 2024 on April 24. The company reported a total operating revenue of 4.773 billion yuan, which represents a 3.23% decline compared to the previous year. However, the net profit attributable to shareholders rose by 46.49% to 419 million yuan. The net profit after excluding non-recurring items was 412 million yuan, showing a significant increase of 49.56%. The net cash flow from operating activities reached 122 million yuan, a turnaround from a loss of 36.20 million yuan in the same period last year. The earnings per share for the year were 1.17 yuan, and the weighted average return on equity was 21.45%.

The distribution plan for the 2024 fiscal year includes a proposal to convert every 10 shares into 4 shares and distribute 1.2 yuan in cash (tax included) to shareholders.

As of the market close on April 23, Shangneng Electric’s price-to-earnings (P/E) ratio was approximately 24.31, the price-to-book (P/B) ratio was about 4.71, and the price-to-sales (P/S) ratio was around 2.13.

The company specializes in the research, development, production, and sale of power electronic devices. The weighted average return on equity for 2024 was 21.45%, reflecting an increase of 1.15 percentage points year-over-year. Similarly, the return on invested capital was 13.46%, up by 0.15 percentage points compared to the previous year.

As of the end of 2024, the net cash flow from operating activities was 122 million yuan, an increase of 158 million yuan year-over-year. The net cash flow from financing activities was 539 million yuan, which decreased by 76.15 million yuan compared to the previous year, while the net cash flow from investing activities was -378 million yuan, compared to -210 million yuan in the prior year.

Regarding significant asset changes, by the end of 2024, the company reported a 933.42% increase in construction in progress compared to the end of the previous year, which raised its proportion of total assets by 2.09 percentage points. Other non-current assets saw an increase of 95.26%, contributing to an increase of 2.03 percentage points in total assets. Conversely, contract assets decreased by 91.45%, leading to a 1.89 percentage point decline in its share of total assets. Accounts receivable and notes receivable rose by 10.68%, reducing their proportion of total assets by 1.65 percentage points.

In terms of liabilities, by the end of 2024, short-term borrowings increased by 186.95%, raising their share of total assets by 11.22 percentage points. Accounts payable and notes payable increased by 2.56%, while other current liabilities decreased by 65.38% and other payables (including interest and dividends) decreased by 63.36%.

As for inventory, at the end of 2024, the carrying value of the company’s inventory was 1.458 billion yuan, accounting for 67.41% of net assets and increasing by 126 million yuan compared to the end of the previous year. The provision for inventory impairment was 1.5165 million yuan, with a provision rate of 0.1%.

Throughout 2024, the company invested 290 million yuan in research and development, marking a 7.96% increase year-over-year. R&D expenditures accounted for 6.07% of operating revenue, a rise of 0.63 percentage points from the previous year. Additionally, the capitalization rate for R&D expenditures was 0%.

In 2024, the company reported a current ratio of 1.17 and a quick ratio of 0.92.

The annual report indicated that among the top ten circulating shareholders at the end of 2024, new shareholders included the Guotou Ruijin New Energy Mixed Securities Investment Fund, Guotou Ruijin Industrial Trend Mixed Securities Investment Fund, and Guotou Ruijin Advanced Manufacturing Mixed Securities Investment Fund, replacing the GF High-End Manufacturing Stock Fund, Wuxi Huafeng Investment Partnership, and Wuxi Daxin Investment Partnership from the previous quarter. In terms of specific holdings, the China Europe Alpha Mixed Securities Investment Fund increased its stake, while Wuxi Shuohong Investment Partnership, Wu Qiang, Duan Yuhe, Hong Kong Central Clearing Limited, Zhu Weiwei, and Jiang Zhengmao saw declines in their holdings.

Shareholder Name | Shares Held (10,000 shares) | Percentage of Total Shares (%) | Change (%)
Wuxi Shuohong Investment Partnership | 3010.26 | 8.37 | -0.034
Wu Qiang | 1811.95 | 5.03 | -0.021
Duan Yuhe | 796.98 | 2.21 | -0.009
China Europe Alpha Mixed Securities Investment Fund | 585.62 | 1.62 | 0.638
Guotou Ruijin New Energy Mixed Securities Investment Fund | 561.77 | 1.56 | 0.238
Hong Kong Central Clearing Limited | 387.48 | 1.07 | -0.028
Zhu Weiwei | 345.20 | 0.96 | -0.004
Jiang Zhengmao | 345.11 | 0.95 | -0.003
Guotou Ruijin Industrial Trend Mixed Securities Investment Fund | 332.46 | 0.92 | 0.000
Guotou Ruijin Advanced Manufacturing Mixed Securities Investment Fund | 266.93 | 0.74 | 0.000

Note: P/E Ratio = Market Capitalization / Net Profit. The P/E ratio is not meaningful when a company incurs a loss; in such cases, the P/B or P/S ratio is typically referenced. P/B Ratio = Market Capitalization / Net Assets. This method is often used for companies with volatile earnings but relatively stable net assets. P/S Ratio = Market Capitalization / Operating Revenue. This method is usually applied to growth companies that are either unprofitable or barely profitable. The P/E and P/S ratios are calculated using the trailing twelve months (TTM) data as of the latest financial report, while the P/B ratio is based on the most recent report data. The percentile calculations for all three ratios span from the company’s listing to the latest reporting date. If the P/E or P/B ratio is negative, the current percentile will not be displayed, which may cause discontinuities in the line chart.