Ping An Securities: In December of Year 24, China's inverter export amount rebounded compared to the previous month, with impressive performances in India, Pakistan, and Southeast Asia.

Ping An Securities released a research report stating that according to data from the General Administration of Customs, in December 2024, China's inverter export amount was 4.8 billion yuan, with a year-on-year and month-on-month increase of +12% and +10% respectively. In terms of regions, in the Asian region, India, Pakistan, and Southeast Asia performed well. In December, China exported inverters worth 250 million yuan to India, with year-on-year and month-on-month increases of +11% and +8% respectively; the Indian authorities are planning a promising policy for mandatory large-scale storage, which is expected to drive the development of large-scale storage. In December, the export value of inverters to Pakistan was 140 million yuan, with year-on-year and month-on-month increases of +95% and +35% respectively, and the expectation of a decrease in electricity prices led to a wait-and-see attitude in October-November, with a rebound in December compared to the previous month. The main points of Ping An Securities are as follows: Year-on-year increase in inverter export amount in December According to data from the General Administration of Customs, in December 2024, China's inverter export amount was 4.8 billion yuan, with year-on-year and month-on-month increases of +12% and +10% respectively. In 2024, the total export amount of inverters in China was 58.8 billion yuan, a 16% decrease year-on-year. In 2024, Europe, Asia, and Latin America were the top three markets for China's inverter exports, accounting for 39%, 34%, and 13% of the export amount respectively. In December, China exported inverters worth 1.61, 1.82, and 0.53 billion yuan to Europe, Asia, and Latin America respectively, with month-on-month changes of +32%, +5%, and -20% respectively; the European market showed a clear rebound, the Asian market continued to grow, and the monthly export amount exceeded that of Europe for two consecutive months; the Latin American market experienced a slight decline month-on-month, possibly due to factors such as the Christmas holiday. Asia: Growth throughout 2024, impressive performance in India, Pakistan, and Southeast Asia in December In 2024, China's inverter exports to Asia amounted to 20.1 billion yuan, a 31% year-on-year increase. In December, the export amount was 1.82 billion yuan, with year-on-year and month-on-month increases of +13% and +5% respectively. In 2024, India and Pakistan in South Asia, Saudi Arabia and the UAE in the Middle East, and Japan were the main regions for China's inverter exports in Asia. Looking at the monthly exports, in December, exports to India and Pakistan increased compared to the previous period, with significant growth in Korea and the Philippines. In December, China exported inverters worth 250 million yuan to India, with year-on-year and month-on-month increases of +11% and +8% respectively; the Indian authorities are planning a promising policy for mandatory large-scale storage, which is expected to drive the development of large-scale storage. In December, the export value of inverters to Pakistan was 140 million yuan, with year-on-year and month-on-month increases of +95% and +35% respectively; the expectation of a decrease in electricity prices led to a wait-and-see attitude in October-November, with a rebound in December compared to the previous month. In November and December, China exported inverters worth 370 million and 410 million yuan to Southeast Asia, with year-on-year growth rates of 14% and 37% respectively; the demand in the Southern Hemisphere spring and summer seasons showed a significant rebound. Europe: Significant decrease in 2024, major markets rebounded in December In 2024, China exported inverters to Europe worth 23.2 billion yuan, a 41% year-on-year decrease. In December, the export amount was 1.61 billion yuan, with month-on-month increases of +12% and +32% respectively. In December, the export value of inverters to the Netherlands and Germany rebounded compared to the previous period, with Hungary, Italy, and Denmark seeing increases of over 100% in export value. In 2024, China exported inverters worth 32.9 billion yuan to Germany, a 53% year-on-year decrease; the export amount in December was 180 million yuan, with year-on-year and month-on-month changes of -44% and +30% respectively. From December 2024 to January 2025, Germany experienced phenomena of extremely high electricity prices and negative prices, indicating a significant impact of a high proportion of solar power installation on the power system, highlighting the importance of large-scale storage installation, with potential demand for large-scale storage in Europe. Latin America, Africa: Latin America declined in December, Africa showed a rebound compared to the previous period In 2024, China exported inverters to Latin America worth 75.1 billion yuan, a 27% year-on-year increase; the export amount in December was 5.3 billion yuan, with month-on-month changes of -14% and -20%, showing weaker performance compared to the previous period, possibly due to factors such as the Christmas holiday. Brazil is the main market for China's inverter exports to Latin America, accounting for 69% of the total export amount in 2024. In 2024, China exported inverters to Africa worth 36.7 billion yuan, a 26% year-on-year decrease; the export amount in December was 3.6 billion yuan, with year-on-year and month-on-month changes of +47% and +47% respectively, showing a rebound compared to the previous period. In 2024, China exported inverters to South Africa and Nigeria, accounting for 32% and 22% respectively; in 2023, they accounted for 72% and 7% respectively; South Africa's annual export amount decreased by 67%, but markets with small base numbers such as Nigeria, Morocco, Kenya, and Mali showed rapid growth. Investment recommendations In December, both emerging markets (India, Pakistan, Southeast Asia) and traditional markets (Europe) saw a rebound, and it is recommended to invest in leading companies in various segments of inverters. Recommendations: Sungrow Power Supply (300274.SZ), a leading company in large-scale storage and successful in the Middle East and Europe; Ningbo Deye Technology (605117.SH), with a strong presence in emerging markets for household storage; Sineng Electric (300827.SZ), a leading company in emerging markets such as the Middle East and India, and successful in large-scale storage. Recommended to pay attention to Jiangsu Tongrun Equipment Technology (002150.SZ), with outstanding competitiveness in the European and American markets and in Japan and Korea; Hoymiles Power Electronics Inc. (688032.SH), a leading domestic microinverter company with promising performance in Europe and Latin America. Risk warning The risks of lower-than-expected demand growth in various markets, increased global market competition, and tightening market restriction policies.