Deye Co.: A Closer Look at Recent Developments in the Inverter Market
On September 23, 2024, Deye Co. experienced a significant drop, closing at its daily limit down, and becoming a key player in the inverter sector’s sharp decline. With institutional investors net selling 179 million yuan and the Shanghai Stock Connect recording a net sell of 33.37 million yuan, the market reacted strongly. Amidst this turmoil, reports emerged suggesting that electricity prices in Pakistan may decrease, a claim Deye’s investor relations department refuted, emphasizing normal operations and attributing the stock price drop to market dynamics.
Via customs data revealed that August 2024’s exports of photovoltaic main materials hit a three-year low at $2.585 billion. In contrast, inverter exports showed resilience, totaling $861 million—a 9.4% month-on-month increase and a 24.78% year-on-year surge. Despite this positive trend, the inverter sector faced a 4.45% decline, outpacing the 1.59% drop in the overall photovoltaic index.
Pakistan’s evolving energy landscape, often overshadowed by its traditional industries, has sparked interest in the home storage market, which has affected investor sentiment in the A-share inverter sector. A recent WeChat article highlighted the potential for significant electricity price reductions, following progress in negotiations between the government and independent power producers.
In its 2024 mid-year report, Deye inverter underscored the growing demand for energy storage solutions in Pakistan, driven by ongoing power shortages and high electricity prices. The company’s significant sales to Pakistan, alongside markets like Germany and Brazil, position it as a leader in the region. However, potential fluctuations in Pakistani electricity prices could impact investor confidence.
Deye’s report mentioned Pakistan five times, highlighting its importance, yet it omitted specific sales volumes—a puzzling decision given previous transparency, rising electricity prices are expected to boost storage demand.
To further understand Deye’s performance, customs data indicates that inverter exports to Pakistan reached 1.714 billion yuan in the first half of the year, with Guangdong and Zhejiang as the leading provinces. While Deye reported total revenue of 4.748 billion yuan, details about its contributions from Pakistan are eagerly awaited in the upcoming annual report.
Deye inverter’s ability to identify and enter markets with pressing energy needs sets it apart from competitors like Sungrow and GoodWe, showcasing its strategic prowess in the inverter industry.