Zhichuan Finance and Economics APP has learned that Shenwan Hongyuan has released research reports stating that, looking at the overall data in August, power inverter exports achieved double growth year-on-year for the first time this year, indicating a turning point in exports. Overseas market demand continues to recover, and power inverter exports have been continuously improving month-on-month. In terms of different regions, Zhejiang's power inverter export data showed strong performance in August. With the end of holidays in Europe and the accelerated release of market demand, coupled with the rapid development of emerging markets, it is expected that there will be further breakthroughs in Q4. Emerging countries in Asia and Africa, combined with policy support and the rise of the photovoltaic industry in recent years, are expected to see further market expansion; Europe and the United States have diverse profit models, and with the demand stimulated by the interest rate cut cycle, power inverter exports are expected to achieve further breakthroughs.

Event: In August, power inverter exports reached 5.2876 million units, up by 31.74% year-on-year, and by 0.87% month-on-month. The export value was 6.157 billion yuan, up by 24.22% year-on-year and by 9.98% month-on-month; from January to August, exports were 35.7027 million units, down by 3.30% year-on-year, with an export value of 40.193 billion yuan, down by 23.75% year-on-year. In August, power inverters achieved double growth year-on-year and month-on-month in exports, mainly due to the gradual end of holidays in Europe, demand recovery, and the continued strong demand in the Middle East, Latin America, and Africa markets, promoting power inverter exports.

Power inverter exports in various regions are accelerating their recovery month-on-month, with strong performance in export data from Zhejiang Province. In 2024, the number of power inverter exports in various regions accelerated their recovery, with the export numbers from Zhejiang Province/Guangdong Province/Jiangsu Province/Anhui Province reaching 2.6545 million/1.5832 million/0.3165 million/0.0772 million respectively, up by +53.02%/+5.32%/+37.36%/-22.58% year-on-year, and up by +13.17%/-18.04%/-0.90%/+52.99% month-on-month. In terms of export value, the export values from Zhejiang Province/Guangdong Province/Jiangsu Province/Anhui Province were 1.894 billion yuan/2.089 billion yuan/0.627 billion yuan/1.02 billion yuan respectively, up by +165.14%/+4.19%/+14.85%/-9.35% year-on-year, and up by +18.76%/-5.51%/+23.24%/+55.78% month-on-month. Export data from each province is gradually recovering, with significant improvements in Zhejiang Province's export data in August.

As the holidays in Europe gradually end, market demand accelerates. With the end of the holidays in Europe in the third quarter, industries are gradually resuming work, and demand for power inverters is gradually recovering. In August 2024, the number of power inverters exported to Europe reached 1.1572 million units, with an export value of 2.736 billion yuan. The export value decreased by 0.62% year-on-year and increased by 23.81% month-on-month. In Europe, countries like the Netherlands, Germany, and Poland have strong demand for power inverters, with export values of 1.192 billion yuan/0.605 billion yuan/0.155 billion yuan respectively. The Netherlands ranks high in both export quantity and value, thanks to Rotterdam Port being Europe's largest port and transit center.

Emerging countries are gradually introducing relevant policy support, and the market is expected to further expand. Since 2024, emerging countries have become a new growth point in the power inverter industry, leveraging their abundant renewable energy resources and large market demand. Strong performances are seen in countries like India and Pakistan. In August 2024, the export value of power inverters to India reached 0.326 billion yuan, an increase of 149.12% year-on-year, and a decrease of 39.49% month-on-month; the export value of power inverters to Pakistan reached 0.326 billion yuan, an increase of 429.04% year-on-year, and a decrease of 9.86% month-on-month. Countries like India and Pakistan have been implementing relevant policies to promote photovoltaic installations. The Indian government released a national power plan in 2023, expecting cumulative installed renewable energy capacity to reach 338GW by 2026-2028, with 186GW from photovoltaic installations. According to the plan by the National Electric Power Regulatory Authority of Pakistan, it is expected that by 2030 and 2048, their photovoltaic installations will reach 12.8GW and 26.9GW respectively.

Investment points: It is recommended to pay attention to leading companies in the power inverter industry such as Sungrow Power Supply (300274.SZ), Sineng Electric (300827.SZ), Jiangsu Goodwe Power Supply Technology Co.,Ltd. (605117.SH), Ginlong Technologies (300763.SZ), Jiangsu Goodwe Power Supply Technology Co.,Ltd. (688390.SH), and AiLuo Energy (300984.SZ).

Risk Warning: Power inverter and energy storage demand falling short of expectations; industry competition intensifying; risks of international trade frictions, etc.