Changjiang Securities·2026-03-05 07:34Investment Rating - The report maintains a "Positive" investment rating for the industry [5]. Core Insights - The report identifies that demand expectations are the decisive factor for performance expectations and stock price fluctuations in the household storage sector. Monthly data improvements are the key catalysts for market trends, while performance realization supports stock prices after data improvements [67]. - The outlook for 2026 indicates a clear upward trend in H1, with expectations for annual performance to reach a turning point, driven by strong demand in markets like Australia, Ukraine, and the UK, alongside seasonal recovery globally [44][67]. Summary by Sections Market Review - The report summarizes that the household storage market is influenced by monthly marginal improvements and annual performance growth. Demand fluctuations significantly impact performance expectations and stock price movements [15][18]. - Historical data shows a correlation between the stock price changes of household storage companies and their net profit growth rates [19]. Regional Insights - Europe: The demand surge in Europe was driven by the energy crisis following the Russia-Ukraine conflict, leading to increased household storage needs. However, channel inventory issues emerged in 2023, causing significant fluctuations in shipments and performance [21][22]. - South Africa: The electricity shortages have created a rigid demand for household storage solutions, but the market has seen a rapid rise and subsequent decline in demand due to inventory buildup [28][31]. - Pakistan: The increase in electricity prices and supportive policies have driven demand, but expectations of price reductions have weakened the market [32]. - Ukraine: The ongoing conflict has led to a significant increase in demand for storage solutions, with expectations for continued strong performance in 2026 [35][53]. 2026 Outlook - The report anticipates strong growth in household storage demand in H1 2026, particularly due to robust subsidy policies in Australia and ongoing needs in Ukraine and the UK. Seasonal recovery is expected to exceed previous forecasts due to rising global electricity prices and geopolitical tensions [44][67]. - The report highlights the potential for performance upgrades across various markets, with a focus on household storage and commercial storage solutions [66][67]. Investment Recommendations - The report recommends several companies based on their performance potential, including DeYe, Airo Energy, GoodWe, and Jinlang Technology, among others, indicating a favorable outlook for the household storage sector in 2026 [67][68].