Minsheng Securities' 2025 Energy Storage Industry Investment Strategy: Large Scale Energy Storage, Network Construction Rising

Minsheng Securities released a research report stating that the overall prices of the energy storage industry chain have shown a downward trend over the past 24 years, leading to an increase in project investment returns, with domestic and overseas demand continuing to grow. At the same time, the current downward trend in industry chain prices is gradually slowing down, and looking ahead to the next 25 years, industry chain prices are expected to bottom out and rise, with an overall positive trend. Key focus areas include the PCS segment; emerging market household demand is rising, and European market inventory is gradually improving. Minsheng Securities' main points are as follows: Large-scale energy storage: Overseas demand is growing rapidly, and domestic infrastructure is moving to the forefront In 24 years, large-scale energy storage projects in overseas regions have shown regional growth, especially in the Middle East countries such as Saudi Arabia and the United Arab Emirates. Looking ahead to the next 25 years, the demand for large-scale energy storage in the Middle East will continue to grow, the trend in the United States is positive, and grid connection delays are gradually being resolved. At the same time, the rise of domestic infrastructure-type energy storage technology, there is a possibility of a significant increase in penetration rates in the northwest region. With the backdrop of the global demand for large-scale energy storage improving, it is recommended to focus on the PCS segment of large-scale energy storage. It is suggested to not only follow domestic integrators to go global but also actively introduce foreign integrators to go global directly. Meanwhile, domestic infrastructure-type PCS is expected to increase profits, break out of the price reduction dilemma, and achieve resonance between overseas and domestic markets in the 25 years. Household energy storage: Emerging markets contribute incrementally, European inventory gradually improves Household energy storage products are mainly exported to overseas markets. Since mid-23, export data has dropped significantly due to the accumulation of household energy storage inventory in Europe. However, starting in 24, demand has been rising in emerging markets such as Pakistan and Southeast Asia, gradually improving industry demand. Looking ahead to the next 25 years, the destocking in Europe has basically ended, with the expectation of normalizing demand. Additionally, there is still significant market potential to be tapped into in emerging markets, with an overall positive trend. Investment recommendations: Large-scale energy storage direction: Focus on the PCS segment, follow domestic integrators to go global, actively introduce foreign integrators to go global directly, and domestic infrastructure-type PCS is expected to increase profits. Recommendations include Sungrow Power Supply (300274.SZ), Sineng Electric (300827.SZ), Shenzhen Hopewind Electric (603063.SH), with attention to Kehua Data Co., Ltd. (002335.SZ), Jiangsu Tongrun Equipment Technology (002150.SZ). Household energy storage direction: Emerging market household demand is rising, European market inventory is gradually improving. Recommendations include Ningbo Deye Technology (605117.SH), and attention to Ginlong Technologies (300763.SZ), Jiangsu Goodwe Power Supply Technology Co., Ltd. (688390.SH), SolaX Power Network Technology Co., Ltd. (688717.SH), Shenzhen Kstar Science & Technology Co., Ltd. (002518.SZ), Pylon Technologies (688063.SH), and Shenzhen Hello Tech Energy Co., Ltd. (301327.SZ). Risk warning: Risks of policy non-compliance, increasing uncertainty in global geopolitics, overseas operating risks, and rising raw material prices, etc.