interface news reporter | ma yueran

Shanghai main board will usher in another inverter enterprise.

on September 4, after deliberation by the listing examination Committee of the Shanghai stock exchange, the initial issue of Guangzhou sanjing electric co., ltd (hereinafter referred to as sanjing shares) passed the meeting.

the prospectus disclosed that Sanjing shares will issue no more than 17.64 million shares, raising a total of 1.204 billion billion yuan, which will be used for its annual output of about 470000 digital energy products and systems intelligent manufacturing construction projects, R & D center construction projects, global marketing service network construction projects and supplementary working capital.

The main products of Sanjing are photovoltaic grid-connected inverters, energy storage inverters and systems, motor drive and control products, etc. Inverter is the DC power into constant frequency constant voltage or FM voltage regulating alternating current equipment. In recent years, the photovoltaic and energy storage markets have become the main application areas of inverters.

At present, the market competition of photovoltaic inverter industry is relatively full, and the competition pattern is relatively stable. The company said that it has strong market competitiveness in the distributed photovoltaic industry market, especially in the field of household photovoltaic energy storage.

In the global inverter industry, Chinese companies are basically in an overwhelming dominant position. According to the latest report of Wood Mackenzie, in 2022, the top 10 inverter companies in the world in terms of shipments are: Huawei, sunshine power supply (300274.SZ), jinlang technology (300763.SZ), guriwat, goodway (688390.SH), SMA, Power Electronics, shangneng electric (300827.SZ), aishiwei and inaugural new energy.

Among them, the top five and eight to ten are all Chinese companies.

Image source: PV-Tech

Wood Mackenzie said that in 2022, the shipments of the world's top ten photovoltaic inverter suppliers accounted for 86% of the global photovoltaic inverter market, an increase of 4 percentage points year-on-year.

The market share of the top five suppliers increased by 8 percentage points to 71%, with shipments exceeding 200 GW. Among them, Huawei and sunshine power supply accounted for more than 50% of the market share, the two last year shipments increased by 83% and 56% respectively.

From the performance of the first half of this year, under the two-wheel drive of the photovoltaic and energy storage industries, inverter companies generally performed well.

according to the interface news incomplete statistics, a total of seven A- share inverter major listed companies announced the results.

Data source: financial report drawing of listed companies: Ma Yueran

Among them, Sungrow's revenue and net profit both ranked first among the seven companies. The company achieved revenue of 28.622 billion billion yuan in the first half of the year, up 133.06 percent year-on-year; net profit of 4.354 billion billion yuan, up 383.55 percent year-on-year. This profit is already about 20% higher than Sungrow's full-year profit last year.

The biggest increase in net profit was from Goodway. The company's net profit in the first half of the year increased by more than 12 times. The company said that its revenue increased significantly in the first half of the year. At the same time, affected by comprehensive factors such as product technology innovation, economies of scale, and exchange gains, the cost and expense ratio decreased significantly compared with the same period last year.

In the first half of last year, Goodway's net profit fell by more than 60% year-on-year due to the expansion of business scale and the lack of revenue from the newly established business unit.

In recent years, the energy storage market has exploded, and a number of inverter companies have mentioned the contribution of energy storage to performance in their financial reports.

sunshine power said in the closing minutes that thanks to the continuous volume of energy storage markets in the United States, Europe and China, its energy storage business delivered 5 GWh in the first half of the year, up 152 year-on-year, with revenue reaching 8.5 billion yuan.

Sungrow predicts that the energy storage market demand will grow at a compound rate of more than 100 percent in the next few years, and its revenue share will increase significantly, and the contribution of energy storage revenue and profits will be further expanded.

In the first half of this year, Shangneng Electric's revenue and net profit increased by more than four times year-on-year. Among them, photovoltaic inverters achieved revenue of 1.303 billion yuan, an increase of 2.75 times year-on-year; energy storage PCS and system integration business achieved revenue of 0.817 billion yuan, an increase of 20.48 times year-on-year.

Shangneng Electric believes that under the background of the national allocation and storage policy, the demand for energy storage installed capacity will increase, thus promoting its shipment volume and broad prospects for future development.

during the same period, the revenue of the energy storage business of Deye shares (605117.SH) increased by 305.92 year on year. The company said that this was mainly due to the power shortage in South Africa in the first half of the year and the surge in demand for household energy storage.

In contrast, the two micro-inverter manufacturers in the first half of the performance growth rate is slightly smaller.

among them, the net profit of hemai shares (688032.SH) in the first half of the year was 0.348 billion yuan, up 72.68 percent year on year. Yu neng technology (688348.SH) made a net profit of 0.134 billion yuan in the same period, up only 4.19 percent.

The current PV inverter market is dominated by centralized inverters and string inverters, with micro and other types of inverters accounting for a relatively small proportion, and the main market for micro inverters is overseas.

As far as Wo Mai shares are concerned, its performance has exceeded market expectations. CICC commented that although the company's micro-reverse shipments fell 41% month-on-month in the second quarter, it benefited from the energy storage system revenue and exchange gains, and revenue and profits were better than expected.

But Interface News noted that due to inventory pressure in markets such as Europe and intensified industry competition, many brokerages, including CICC, have lowered their net profit forecasts for the next two years.

Yu Neng Technology also mentioned the slowdown in demand in the European market in its financial report. The company said that the European market accounts for more than 50% of China's total photovoltaic exports, making it China's largest overseas photovoltaic market. In the first quarter of this year, the traditional off-season demand in Europe was better than expected, but the second quarter has slowed down and faced the risk of overstock.

In the second quarter, Yuneng Technology's operating income was 0.222 billion yuan, down 31.4 percent from the same period last year and 49 percent from the previous quarter, while net profit was 0.017 billion yuan, down 80 percent from the same period last year and 86 percent from the previous quarter.

After the results were announced, Yuneng Technology's share price also suffered a sharp drop.

Yu Neng Technology Chairman Ling Zhimin said publicly that sales in the second quarter fell short of expectations. Because the company's sales situation in the first quarter was very good, I thought the market would continue to maintain its momentum.

he said that in the fourth quarter of last year, some models in the inverter market were out of stock or even transported by air, which once caused panic among customers. therefore, customers took more goods in the first quarter of this year.

Due to concerns about supply chain supply problems, Yuneng Technology carried out some stocking, resulting in excessive shipments in the first quarter. Coupled with the lack of customer digestion capacity, weak demand in the second quarter, there is inventory pressure, superimposed on the company's balcony photovoltaic system product switching, resulting in the reversal of inventory shipments.

The same European inventory problem has also affected the performance of Jinlang Technology. As the world's third-largest inverter leader, Jinlang Technology's first-half performance growth rate was lower than that of other head companies, with a year-on-year increase of less than 60%.

citic securities said that jinlang technology's interim results were basically in line with expectations, and the revenue of grid-connected inverters still maintained a high growth, but the pace of shipments of energy storage inverters slowed down due to inventory pressure in markets such as Europe.

in the second quarter, jinlang technology realized revenue of 1.597 billion yuan and net profit of 0.303 billion yuan, down 6.6 from the previous quarter.

CITIC Securities believes that, benefiting from the long-term high growth of the energy storage market and marginal improvement in demand, it is expected that Jinlang Technology's performance in the second half of the year will gradually repair.