On September 23, the A-share photovoltaic equipment concept experienced a fluctuating decline, with Deye Shares (605117.SH) leading the fall with a 10% drop during the trading day, followed by declines in Mu Bang High-tech (603398.SH), CITIC Bo (688408.SH), Hemei Shares (688032.SH), Shangneng Electric (300827.SZ), Sunshine Power (300274.SZ), and Maiwei Shares (300751.SZ).
The downward trend in the share prices of inverter companies such as Deye may be related to rumors about changes in electricity prices in Pakistan.
A domestic securities analyst specializing in new energy said, "Today, the inverter sector has undergone some adjustments, but the upward trend in the fundamentals of each company remains unchanged.
It is mainly due to the news factor that electricity prices in Pakistan may decrease, causing some investors to worry about demand."
"Previously, due to financial pressure and high temperatures, the electricity prices for residents in Pakistan increased, with the basic electricity price rising in July, and the residential electricity price increasing to 1.5 yuan/kWh, which became one of the reasons for the explosion in household storage demand," the industry analyst told First Financial Daily.
The high electricity prices may be adjusted down this time mainly to resolve the contradictions between people's livelihoods and government finances caused by high electricity prices.
Whether it can be implemented later still needs further observation.
Even if it is reduced, it is highly likely to be higher than the level before the price increase.
In terms of fundamentals, in the first half of this year, Deye achieved a revenue of 4.75 billion yuan, a decrease of 3.0% year-on-year; and achieved a net profit attributable to the parent company of 1.24 billion yuan, a decrease of 2.2%.
Among them, the company achieved a revenue of 2.86 billion yuan in the second quarter of this year, an increase of 2.0% year-on-year, and an increase of 52.1% quarter-on-quarter; and achieved a net profit attributable to the parent company of 800 million yuan, an increase of 19.0% year-on-year, and an increase of 85.4% quarter-on-quarter.
"In the first half of this year, the rigid demand formed by the severe power shortage in emerging markets represented by Pakistan, India, the Philippines, and Myanmar, as well as the economic benefits brought by the increase in electricity prices, policy promotion, and the reduction in the prices of components and batteries, has led to a surge in market demand," said Deye.
Benefiting from the increased demand in emerging markets, the shipment of inverters by Deye increased in the first half of this year.
The company's mid-year financial report data for 2024 shows that in the first half of this year, Deye achieved inverter sales of 711,700 units, an increase of 7.8% year-on-year, including 214,100 units of energy storage inverters, 242,700 units of micro-grid inverters, and 254,900 units of string inverters, with products sold to countries such as Pakistan, Germany, Brazil, India, and South Africa.
Looking at the industry as a whole, in 2024, China's inverter exports to Pakistan showed a rapid growth trend.
Data from the General Administration of Customs of China shows that from January to July 2024, the amount of inverters exported to Pakistan was 2.075 billion yuan, a year-on-year increase of 311.08%, with an export amount of 361 million yuan in July, a year-on-year increase of 393.91%.
