A-share subscription | SOFARSOLAR opens subscription, ranking tenth in global photovoltaic inverter market shipments in 2023

According to Zhitong Finance APP, on March 24, SOFARSOLAR (301658.SZ) opened for subscription, with an issue price of 11.8 yuan per share, a subscription limit of 7,500 shares, and a price-to-earnings ratio of 15.88 times. It is listed on the Shenzhen Stock Exchange's Growth Enterprise Market, with Guotai Junan Securities as its exclusive sponsor. The prospectus reveals that SOFARSOLAR is a high-tech enterprise specializing in the research, development, production, sales, and service of new energy power equipment, focusing on the conversion, storage, and management of solar power. Its core products include photovoltaic grid-connected inverters, photovoltaic energy storage inverters, and energy storage batteries. The company's suppliers include Baohui Electronics, Xinchengyuan, CATL, Ruipu Lanjun, Yihexing, Shiping International, Yiwei Power, Youwa Technology, Texas Instruments, Liwang High-Tech, and Yingzhen Technology. During the reporting period, the composition of the company's main business revenue is as follows: According to a research report published by the internationally renowned power and renewable energy research institution Wood Mackenzie, the company ranked tenth in global photovoltaic inverter shipments in 2023. According to research data from the globally recognized market research institution IHS Markit, the issuer ranked ninth in global household inverter shipments in 2021. In terms of finance, in the fiscal years 2021, 2022, and 2023, the company achieved operating revenues of approximately 1.826 billion yuan, 4.457 billion yuan, and 3.743 billion yuan, respectively. The company's net profits were approximately 187 million yuan, 849 million yuan, and 341 million yuan. In 2023, the company's net profit decreased year-on-year, mainly due to: as the impact of the Ukraine crisis eased, the price of electricity for European residents saw a significant year-on-year decline in 2023. By the end of 2023, electricity prices in some regions of Europe had decreased by more than 50% year-on-year. Coupled with the cyclical fluctuations in the industry and policy, the demand for residential and commercial energy storage markets slowed down, affecting the revenue scale and profit of the company's high-margin energy storage business (energy storage inverters, energy storage batteries): in 2023, the revenue proportion of the company's energy storage business decreased from 58.78% in 2022 to 43.77% in 2023. During the year, the company continued to invest in the research and development of several new products such as centralized energy storage systems and micro-inverter systems, resulting in a significant increase in R&D expenses. The company's period expense ratio increased by 8.75 percentage points year-on-year in 2023. The company continued to expand its domestic market, with the domestic revenue proportion rising from 10.39% in 2022 to 24.43% in 2023. As competition in the domestic solar storage market intensified, the gross profit margin of the company's grid-connected inverters in domestic sales decreased year-on-year in 2023