Great Power(SZ:300438) Xin Lang Cai Jing·2025-12-23 00:36Core Viewpoint - The company demonstrated strong performance during the European household storage demand explosion in 2022, but is currently facing pressure due to industry deflation and low capacity utilization from 2023 to H1 2025. A new cycle is expected to start in the second half of 2025, driven by a surge in storage demand, positioning the company as a key player with significant capacity and operational leverage for sustained growth [1]. Historical Review - The company has established its energy storage business early, achieving the second highest domestic household storage cell shipments by 2021. In 2022, during the European household storage demand surge, the company's net profit increased by 244% year-on-year to 628 million yuan, showcasing strong performance elasticity. However, from 2023 to 2024, the company faces challenges due to deflation and depreciation from low capacity utilization [2]. New Cycle - With the launch of a 4GWh 100Ah household storage cell in October, the company's total energy storage capacity has reached 44GWh, comprising 24GWh for large storage and 20GWh for small storage. The company is well-prepared for the current supply-demand imbalance in energy storage, with idle large storage capacity gradually reaching full production. In H1 2025, the energy storage cell business is expected to account for 62% of revenue, leading the A-share battery sector in terms of "storage content." The demand for large storage is robust, and the household storage market is anticipated to see a recovery in Q4 across Europe, Asia, Africa, and Australia [2]. Future Outlook - The company's performance elasticity is expected to be concentrated in 2026 as high-cost inventory clears and economies of scale become evident. Revenue projections for 2025-2027 are estimated at 11.004 billion, 20.610 billion, and 28.718 billion yuan, with net profits of 310 million, 1.737 billion, and 2.622 billion yuan respectively, maintaining a "buy" rating [3].