New Stocks Preview | Cobra Energy deeply cultivates European energy storage, welcoming capitalization opportunities with a net profit increase of over 336% in three years.

Global energy transformation is accelerating, and the European distributed energy storage track is entering a long-term expansion window. The Nordic region, with its stable electricity prices, arbitrage mechanisms, and high proportion of renewable energy integration demand, has become a high-value area for energy storage integrators. With its self-developed full-stack energy storage system and deep market layout in the Nordic region, the outbound energy storage integrator is entering the capitalization stage. On June 16th, Shenzhen Cub Energy Co., Ltd. (referred to as "Cub Energy") officially submitted its listing application to the main board of the Hong Kong Stock Exchange, with GUOTAI JUNAN I being the exclusive sponsor. The raised funds are intended to be primarily used for the construction and upgrading of production lines, the construction and upgrading of marketing and after-sales service networks, working capital, and other general corporate purposes. A provider of utility-grade distributed BESS solutions According to the prospectus, Cub Energy was established in 2014 and is a provider of utility-grade distributed BESS solutions, committed to promoting energy storage technology innovation. The company focuses on the research, development, manufacturing, and sale of integrated AC-DC distributed energy storage systems. Serving a global customer base, the company offers solutions designed to adapt flexibly to various scenarios and provide full life-cycle services for BESS. The company's BESS solutions have been widely used in distribution networks, commercial and industrial sectors, and microgrids. The company has gained industry recognition in overseas markets, particularly in Europe. In recent years, the company has been continuously upgrading its product portfolio in the field of distributed utility-grade BESS. The company has obtained internationally recognized safety certifications and test reports, including UL9540, UL9540A, and LSFT (CTS-800, large-scale fire testing). The company has obtained medium and high voltage grid access certifications in 16 European countries, including Finland, Sweden, Denmark, the Czech Republic, Italy, Spain, the UK, and Germany. In addition, the company has obtained financial and compliance certification (VoC) issued by DNV since 2023. The company's product portfolio consists of three main series, supplemented by proprietary BMS, PCS, and EMS subsystems. The BMS utilizes active balancing technology to ensure battery consistency and significantly reduce operation and maintenance costs. The PCS integrates diverse grid standard models from different countries and regions, combined with a proprietary EMT simulation and modeling platform, providing strong grid adaptability and significantly reducing grid connection time. The EMS provides power trade support and grid analysis. The company has three product series: PowerCombo, FlexCombo, and FlexCube. Each product series adopts an AC-DC integrated design and provides expandable capacity to adapt to various deployment scenarios, depending on grid connection voltage levels, site conditions, logistics requirements, and local environmental and fire safety regulations. FlexCube is expected to confirm revenue and sales costs from 2026. According to Frost Sullivan data, the top ten suppliers in the European distributed utility-grade BESS market by shipment volume accounted for 82.7% of the market share in 2025, indicating a relatively concentrated market. The company's market share in the European distributed utility-grade BESS market is approximately 5.5%, ranking fifth among Chinese solution providers and eighth among all solution providers. In the Nordic distributed utility-grade BESS market, the top five suppliers accounted for 81.5% of the market share, while the company's market share was approximately 22.3%, ranking first among Chinese solution providers and second among all solution providers. Focus on the European market, rapid growth in performance In terms of performance, in 2023, 2024, and 2025, Cub Energy achieved revenues of 451 million yuan, 494 million yuan, and 703 million yuan, respectively, with core DRIVE growth driven by European order volume. In 2025, overseas revenue accounted for 87.9%, with the European market contributing 86.7%. In terms of profitability, the company's sales gross margin increased from 22.9% in 2023 to 26.7% in 2024, mainly due to a decrease in lithium battery core prices and raw material costs. The gross margin in 2025 was 25.7%, remaining stable overall. The company's profit growth is remarkable, with net profits of 12.331 million yuan, 33.17 million yuan, and 53.812 million yuan in the past three years, with an increase of over 336%. It is noted that Cub Energy has established stable cooperative relationships with core upstream and downstream partners. In 2025, the top five customers accounted for 50.6% of revenue, with sufficient cooperation orders from top customers; the top lithium battery core supplier accounted for 36.1% of purchases, and this partner also purchases the company's energy storage equipment, forming a stable upstream and downstream synergy and building a stable industrial chain supply-demand system. The European energy storage market remains prosperous, with the industry expected to grow rapidly In the long term, according to Frost & Sullivan reports, the global, especially European, distributed energy storage sector has a clear long-term growth logic, providing a stable growth foundation for the company. The European BESS market is experiencing rapid growth, with the market size increasing from 4.4GWh in 2021 to 36.5GWh in 2025, and is expected to reach 176.9GWh by 2030, with a compound annual growth rate of 37.1% from 2025 to 2030. Under the impetus of fluctuating electricity prices, widening peak-valley price differentials, and the increasing demand from enterprises for energy cost control and power reliability, the commercial models in the distributed utility-grade BESS sector are gradually maturing, and project economics continue to improve. DSOs will use BESS as a core means to provide local grid flexibility, alleviate expansion pressure, and delay expensive traditional grid upgrade investments. In addition, factors such as the expanding peak-valley price differentials and strict carbon emission assessments in Europe are also driving medium and large industrial and commercial users to accelerate the deployment of energy storage for economic arbitrage and energy self-sufficiency. Therefore, the share of distributed utility-grade BESS in the overall European BESS market is expected to increase from approximately 22.2% in 2025 to 30.2% in 2030. The Nordic region's electricity system is primarily based on clean energy, with cold winter climates and significant seasonal fluctuations in electricity demand. At the same time, the Nordic countries are accelerating the transition to a high proportion of renewable energy sources, especially affected by the dual impacts of renewable energy integration and the phasing out of some traditional base load power sources, the volatility and voltage/frequency regulation pressure of their power systems are becoming increasingly prominent. In this context, the lithium-ion energy storage market in the Nordic region is expected to increase from 2GWh in 2025 to 10GWh in 2030, with a compound annual growth rate of 38% during this period. The energy storage industry has cyclical and globalization characteristics, and the market is affected by common industry variables such as raw material prices, foreign trade policies, industry competition, and regional demand fluctuations. In response to the industry's cyclical challenges, the company has established a comprehensive long-term hedging strategy: the raised funds will be used to invest in the 15GWh capacity base in Changzhou to scale up production and reduce unit manufacturing costs; continuous investment in BMS, PCS, and AI energy storage research and development to strengthen product differentiation and premium; planning overseas production bases to reduce cross-border tariff and logistics costs; expanding into emerging markets in Africa and South America to optimize global revenue structure; introducing 10 to 15-year long-term operation and maintenance agreements to create continuous service income and smooth out equipment sales cycle fluctuations. Overall, with its self-developed full-stack hardware and software, multi-country grid access qualifications, Cub Energy occupies a leading position in the Nordic distributed energy storage field, and is expected to open up a growth ceiling in the future through capacity expansion, new product launches, and global diversified layouts. Although the industry faces cyclical disturbances, the company has implemented comprehensive measures to diversify production capacity, research and development, and market operations. Investors can focus on tracking the European new orders, lithium battery prices, the release of Changzhou production capacity, and the expansion of overseas emerging markets to observe the company's long-term growth potential.