(Yicai) Jan. 23 -- Shares in Sungrow Power Supply surged as much as 8 percent today after the Chinese solar equipment maker said it expects profit to nearly triple in 2023 from the previous year, beating expectations, thanks to a stronger exchange rate, cheaper ocean freight prices and the fast growth of the global renewable energy market.

Sungrow’s share price [SHE: 300274] closed up 4.4 percent at CNY91.43 (USD12.83) today. Earlier in the day it hit CNY94.50.

Net profit is likely to jump by between 159 percent and 187 percent in 2023 from the year before to between CNY9.3 billion (USD1.3 billion) and CNY10.3 billion, the Hefei-based company said. Revenue surged between 76 percent and 89 percent to between CNY71 billion to CNY76 billion.

Sungrow’s net profit soared three-and-a-half-fold in the first three quarters of last year from a year ago to CNY7.2 billion (USD1 billion), according to its latest financial statement. Revenue doubled to CNY46.4 billion (USD6.5 billion), 56 percent of which came from overseas sales.

China’s newly installed PV capacity most likely hit a new high last year at over 200 gigawatts, Galaxy Securities said in a recent report. Prices in the solar sector have bottomed out and are stabilizing. As fundraising becomes tougher, new capacity will be added only by industry leaders and companies with technological breakthroughs, it said.

Editor: Kim Taylor