Benefiting from the continuous prosperity of photovoltaic industry and other factors, the net profit of many inverter enterprises increased twice as much as last year. Up to now, five inverter companies, SUNGROW, DEYE Technology, GINLONG Technologies, GOODWE Technologies and YUNNG Technology, have released earnings preannouncement for 2022. Among them, YUNENG Technology's performance has the fastest year-on-year growth rate. The company expects to achieve a net profit of 340-380 million yuan, an increase of about 237-277 million yuan year-on-year, with an increase of 230%-269%. This set the best performance in the history of YUNENG Technology, but it still fell short of market expectations.
YUNENG Technology is mainly engaged in photovoltaic micro inverters and intelligent control short-break devices, which are mainly used in distributed photovoltaic power generation systems. In 2021, the company's micro inverter revenue accounted for 77.67%. According to the data of Wood Mackenzie, an internationally renowned energy research institution, in 2020, YUNENG Technology ranked second among global manufacturers and first among domestic manufacturers in terms of product shipments in the micro inverter market.
YUNENG Technology relies on overseas markets. According to the previous financial report data, the company's overseas revenue accounted for nearly 98%, which was greatly affected by trade friction, rising sea freight and other factors. In the announcement, YUNENG Technology affirmed the booming global distributed photovoltaic market last year, and at the same time said that its fourth-generation high-current micro inverter and second-generation intelligent control shutter products have won market recognition. At present, there are sufficient orders for products such as hand-held micro inverters and intelligent shutdown devices.
YUNENG Technology had a net profit of 253 million yuan in the first three quarters of last year, of which the net profit in the third quarter was 124 million yuan. Based on this calculation, the net profit of the company in the fourth quarter of last year was RMB 87 million-127 million, with a month-on-month growth rate of-29. 8%-2.4%, which is likely to decline month-on-month. This is mainly because YUNENG Technology accrued year-end awards and other expenses in the fourth quarter of last year, and some shipments affected by epidemic logistics could not confirm revenue, and its performance was slightly lower than market expectations.
In 2023, the volume of YUNENG Technology will show a high growth, mainly focusing on the sales of all-in-one machines, and the shutter will double. It is estimated that the net profit attributable to the company from 2022 to 2024 will be 370 million yuan, 1.21 billion yuan and 1.87 billion yuan, with year-on-year increases of 257%, 229% and 55%.
Figure 1: The photovoltaic industry continued to prosper, with inverter companies doubling net profit
As the leader of the industry, SUNGROW ranks first in terms of profit scale, and its performance exceeds expectations. The company expects revenue of 39 billion-42 billion yuan in last year, a year-on-year increase of 62%-74%; The net profit was 3.2 billion-3.8 billion yuan, up 102%-140% year-on-year. In the first three quarters of 2022, the net profit of SUNGROW Power was 2.061 billion yuan. Based on this calculation, the net profit of the company in the fourth quarter of last year was 1.139 billion-1.739 billion yuan, with a year-on-year increase of 1360%-2129%.
According to SUNGROW POWER, that its core business market position such as photovoltaic inverter, energy storage system and wind power converter was further strengthened last year, and its shipments and revenue increased significantly year on year. At the same time, benefiting from scale effect, channel expansion and improvement of operational capability, the company's gross profit margin and profitability were further improved. Inverter converts DC energy into constant frequency and constant voltage or frequency and voltage modulation alternating current. In recent years, photovoltaic and energy storage markets have become the main application fields of inverters.
Thanks to the rapid growth of inverter business, Deye Co., Ltd. expects a net profit of 1.45 billion-1.55 billion yuan in last year, with a growth rate of 150.62%-167.91%. The announcement shows that the energy storage battery pack products developed by the company in the early stage gradually matured and put into the market, and it was quickly shipped with its energy storage photovoltaic inverter in the second half of the year; The operating performance of environmental electrical appliances business also achieved year-on-year growth.
DEYE Technology Co., Ltd. was originally engaged in home appliance parts business and is the largest professional fin heat exchanger manufacturer in China. In recent years, the company has gradually expanded its business proportion in the field of inverters. In the first half of last year, inverter became its largest business segment for the first time.
DEYE Technology Co., Ltd. is also the only company in China that includes grid-connected inverters, energy storage inverters and micro inverters. From September to October last year, the company announced two production expansion plans, each with an investment of 1.5 billion yuan to build series inverter production projects and micro inverter manufacturing and inverter R&D center projects.
Last year, the performance of GINLONG Technologies and GOODWE Technologies also maintained a high growth trend. Among them, the net profit of GINLONG Technologies was 1.04 billion-1.1 billion yuan, up 119.49%-132.15% year-on-year. SOOCHOW Securities predicts that in 2023, the shipment of GINLONG Technologies Energy Storage Inverter will increase by 3-4 times year-on-year, and the scale effect will gradually appear; At the same time, due to the downward price of silicon materials, the installed demand of photovoltaic will show high growth. It is estimated that GINLONG Technology's grid-connected inverter shipments will be 1.2 million-1.4 million units, up more than 40% year-on-year. It is estimated that the company's market share target will reach 20% in 2025.
GOODWE Technologies predicts that the net profit attributable to the shareholder in 2022 will be 590-710 million yuan, up 111.06%-152.92% year-on-year. The company emphasized the importance of energy storage in its earning preannouncement Benefiting from the broad development space of photovoltaic market, and the conflict between Russia and Ukraine aggravated the European energy crisis, distributed energy storage showed explosive growth in the European market, and the sales volume of energy storage inverters and energy storage batteries increased significantly compared with the previous year. GOODWE Technology state that in the first half of last year, due to the shortage of materials and the epidemic situation, its sales volume fell short of expectations. In the second half of last year, as the epidemic situation eased, the company made efforts in various fields.
On January 20th, the last trading day of the 2022, the stocks of inverter enterprises rose. As of the close of the day, GOODWE Technologies rose 7.98%, closing at 366.5 yuan per share, with a total market value of 45.2 billion yuan; SUNGROW Power rose 7.04% to close at 128.55 yuan, with a total market value of 190.9 billion yuan; GINLONG Technology rose 1.67% to close at 174.56 yuan, with a total market value of 65.8 billion yuan. DEYE Technology rose slightly by 0.26% to close at 327.15 yuan, with a total market value of 78.2 billion yuan. YUNENG Technology's share price fell, down 3.9% to close at 468.8 yuan/share, with a total market value of 37.5 billion yuan.
The Photovoltaic Industry Remains Prosperous, with Inverter Companies Doubling Net Profits-China.exportsemi.com
