Energy Storage Performance in the First Three Quarters
Collective Earnings Increase! Installation Doubles! "Spoiler" for Energy Storage Performance in the First Three Quarters
Preface
As A-share listed companies successively release their third-quarter reports, the energy storage industry has achieved significant performance results. In the wave of prosperity in this industry, many well-known enterprises have emerged, including Trinasolar, Wintime Energy, Risen, Linyang Energy, and Lucky Harvest. This article will delve into the vigorous development of the energy storage industry, showcasing the prominent position of our company's flagship product, the busbar, in this wave of innovation.
1. Overall Growth Momentum of the Industry
According to Huatai Securities' research report, driven by factors such as large-scale energy storage projects in domestic grid support, market-oriented projects, price reduction in the photovoltaic industry chain, wind-solar complementary competition, and the retirement of thermal power units, the winning scale of domestic energy storage projects in Q3 increased by 37.0% month-on-month. It is expected that the domestic newly installed capacity will grow by 184% year-on-year to reach 45.1 GWh in 2023. Meanwhile, European household energy storage still maintains high economic viability, supporting high-demand growth. With the gradual maturity of household storage, it is expected that the energy storage industry will experience a new round of rapid growth in 2024. Inverter companies expect Q3 unit profits to remain flat, while large-scale energy storage companies see profits increase with shipment, and household storage companies see profits remain flat with shipment.
2. Energy Storage as the Main Driver of Performance
In the third-quarter performance forecasts of five energy storage-related companies that have been released, all show a trend of net profit increase, providing solid support for industry growth. Among them, Trinasolar, Wintime Energy, Risen, Linyang Energy, and Lucky Harvest all achieved significant growth in their attributable net profits.
Trinasolar: The net profit for January to September 2023 is expected to increase by 89.94% to 132.15% year-on-year. The company achieved significant growth in energy storage product shipments and continuous cost reduction through the enrichment of the energy storage product line and market expansion.
Wintime Energy: The net profit for the first three quarters is expected to increase by 5.11% to 9.00% year-on-year. While actively developing its traditional coal-fired power main business, the company is actively laying out the energy storage industry, promoting the construction of relevant production lines for vanadium flow batteries, which will be put into operation in the second half of 2024.
Risen: The net profit for the first three quarters is expected to increase by 60.56% to 84.65% year-on-year. The company performed well in the integration of light storage projects and lithium-ion battery energy storage systems, achieving rapid business growth.
Linyang Energy: The net profit for the first three quarters is expected to increase by 9.7% to 20.6% year-on-year. The company continuously improves the industrial chain layout in the energy storage sector, experiences rapid growth in energy storage business, and promotes overall performance improvement.
Lucky Harvest: The net profit for the first three quarters is expected to increase by 61.96% to 67.91% year-on-year. The company steadily enhances its business in new energy power battery packs, energy storage, and photovoltaic inverters, effectively advancing measures such as cost reduction and efficiency improvement, and independent innovation.
3. Energy Storage Installation Rush is Coming
The energy storage race continues to heat up, and as of September 2023, the scale of new energy storage in China has reached 13.6 GW/35.5 GWh. The newly installed capacity continues to climb, with a 75% month-on-month increase in September, including a 94% month-on-month increase in front-end newly installed capacity. This upward trend indicates the enormous potential of the energy storage market. In this highly prosperous and attractive industry, our clients, such as BYD and China Energy Construction, have successfully won multiple domestic energy storage projects, demonstrating their strong competitiveness in the field of energy storage. The sales of energy storage batteries are also continuously growing, and the decline in the price of energy storage battery cells provides favorable conditions for reducing the cost of energy storage systems.
Conclusion
Against the backdrop of the vigorous development of the energy storage industry, a large number of manufacturers specializing in the production of battery packs required for energy storage systems have emerged in China.
The components of the battery pack mainly include internal connection cables, temperature sensors, fans, integrated cover plates, metal casings, positive and negative terminals, copper bars, aluminum bars, clips, etc., involving dozens of materials and more than ten suppliers. Due to the lack of unified product standards in the domestic energy storage industry, the materials required for battery packs are mostly non-standard.
The production of battery packs must wait for all materials to be complete before proceeding with assembly line production, so the supply cycle of these dozens of materials directly affects the overall equipment supply time, and thus needs close attention. Among these materials, copper bars and aluminum bars are indispensable elements.
As a leader in the electric vehicle busbars of China, RHI Electric has emerged in recent years, especially in the development of eight cost reduction plans related to copper-to-aluminum transformation, involving areas such as lightweighting, thermal runaway, and the latest technology liquid cooling solutions, demonstrating outstanding research and development capabilities that have reached the world's leading edge technology level.
In the past few years, RHI Electric has rapidly developed and captured most of China's new energy vehicle (EV busbars) market. Many globally leading automotive component manufacturers have explicitly expressed long-term cooperation intentions and plans with RHI Electric. Some have established good cooperative relationships with our company for many years. Given the enormous potential of the energy storage system busbars market in the next decade, RHI Electric is fully committed to entering the ESS busbars industry and actively exploring the global market.