Core Viewpoint - The report from CICC highlights that Shuangdeng Co., Ltd. (06960) is a leading player in the domestic communication and data center energy storage market, with a focus on serving major cloud service providers (CSPs) and overseas power equipment manufacturers. The initial coverage gives an "outperform" rating with a target price of HKD 22.90 [1]. Group 1: Market Opportunities - The energy storage market has significant growth potential, driven by the increasing capital expenditure in computing power and the declining costs of energy storage batteries, along with supportive policies. The demand for data center energy storage, including backup power and regulation storage, is expected to be rapidly released [2]. - The demand for power storage is entering an upward cycle, supported by improved economic viability of independent storage in China and overseas energy structure transformations. The supply-demand relationship is expected to reach a turning point in Q3 2025, with leading energy cell manufacturers facing supply shortages [3]. Group 2: Company Positioning - The company's energy storage business focuses on data center scenarios, positioning itself with leading domestic CSPs and major overseas power manufacturers. According to Frost & Sullivan, the company is projected to hold the largest market share in backup power for data centers in both domestic and global markets by 2024 [3]. - The market perceives the company's overseas progress as slow; however, it has already entered the overseas supply chain and positioned itself with key customers, indicating substantial future growth potential. Potential catalysts include continued unexpected increases in capital expenditure from terminal CSPs and ongoing progress in orders from mainstream CSPs [4]. Group 3: Financial Projections - The company is expected to achieve EPS of CNY 0.65 and CNY 1.29 for the years 2025 and 2026, respectively, with a CAGR of 24.8% from 2024 to 2026. The current stock price corresponds to a P/E ratio of 10.1x for 2026, while the company is given a target P/E of 16.0x, leading to a target price of HKD 22.90, representing a 58.0% upside [5].
中金：首次覆盖双登股份予“跑赢行业”评级 目标价22.90港元