Investment Highlights - Company initiates coverage on Shuangdeng Co., Ltd. (06960) with an "outperform" rating and a target price of HKD 22.90, based on a P/E valuation method corresponding to a 16.0X P/E for 2026 [1] - The energy storage market has significant growth potential, driven by the increasing capital expenditure in global computing power and the declining costs of energy storage batteries, alongside supportive policies [1] - The demand for data center energy storage, including backup power and regulation storage, is expected to be rapidly released due to increased capital spending in global computing power [1] Industry Outlook - The power storage sector is entering an upward cycle, with a turning point in supply and demand expected in Q3 2025, as domestic independent energy storage economics improve and overseas energy structure transformations and policy subsidies drive demand [1] - The supply-demand relationship is anticipated to improve, leading to a recovery in energy storage cell prices [1] Company Strategy - The company's energy storage business focuses on data center scenarios, positioning itself with leading domestic CSP manufacturers and top overseas power supply manufacturers, aiming for a leading market share in backup power for data centers in 2024 [2] - The company is optimistic about its international expansion through overseas factories, which will open up growth opportunities [2] - The company has already entered the overseas supply chain and positioned itself with key customers, contrary to market perceptions of slow overseas progress [2] Earnings Forecast and Valuation - The company forecasts EPS of RMB 0.65 and RMB 1.29 for 2025 and 2026, respectively, with a CAGR of 24.8% from 2024 to 2026 [2] - The current stock price corresponds to a 10.1x P/E for 2026, while the company is assigned a 16.0x P/E, leading to a target price of HKD 22.90, indicating a potential upside of 58.0% [2]
双登股份(06960.HK)：中国通信及数据中心储能龙头 受益全球AIDC高景气成长空间广阔