Flash | 22 Dec 2025 04:56:13 ET │ 14 pages China Renewable Energy Cutting PRC 2026E New Solar Capacity to 220GW (-24% YoY) as Big IPP Groups Look Cautious amid Reduced Returns CITI'S TAKE After due diligence in Beijing last week, we slightly raised our forecasts of PRC solar installation to 290GW (up from 280GW) for 2025E based on projects being built but lowered that for 2026E to 220GW (-24% yoy) (down from 250GW) which seem below market expectations; big PRC IPP groups such as China Huaneng Group and Nati ...

Flash | Ans. Global top-tier transformer makers such as Hyundai Electric, Hitachi and Siemens have orders on hand to secure their earnings in 2026-28E. New orders should remain robust in 2026E amid rising capex from US utility, tech and data center companies. We expect LS Electric to receive new orders from the US datacenters of Amazon Web Services (AWS) soon given its strong track record in getting new orders from US datacenter entities. PRC transformer makers have seen strong growth from overseas (ex-US). ...

Summary of the Conference Call on Energy Storage Systems (ESS) in China Industry Overview - The conference call focused on the **Energy Storage Systems (ESS)** market in China, highlighting its rapid expansion driven by strong policy support and increased project filings [6][15][17]. Key Insights and Arguments 1. **Growth Projections**: - Global ESS installations are projected to grow by **40-60% year-over-year in 2026**, an increase from the previous estimate of approximately **30%** [6][7]. - China's ESS installation estimates for FY25-30 have been raised by **14-32%**, with a target of **180GW** installed capacity by 2027 [6][15]. 2. **Policy Support**: - Recent regulatory actions across multiple provinces are accelerating ESS deployment, with over **4,200 projects** totaling **518GWh** filed in Q3 2025, marking a **343% year-over-year increase** [6][33][35]. - The **NDRC** announced an "Action Plan in Energy Storage Development" targeting **180GW** of cumulative ESS installations by 2027, requiring an investment of **Rmb250 billion** [15][17]. 3. **Market Dynamics**: - The shift from mandatory ESS paired with renewable energy to independent ESS is noted, with capacity compensation models emerging as a future revenue source [23]. - Independent ESS projects accounted for **93.2%** of total capacity in the recent surge of project filings [35]. 4. **Earnings Impact**: - Earnings for ESS-related companies, such as **Sungrow**, are expected to increase by **2-15%** due to the favorable market conditions [6][8]. 5. **Regional Developments**: - Various provinces are implementing capacity compensation policies to incentivize local ESS installations, with specific rates outlined for different regions [18][21]. Additional Important Content - **AIDC Trends**: - The call discussed the rising power demand from **AIDC (Artificial Intelligence Data Centers)**, which is expected to account for **12%** of total US power demand by 2028, driving ESS adoption [61][62]. - AIDC projects are anticipated to have an ESS attachment ratio ranging from **10% to 30%** of their load, with durations varying from **2 to 8 hours** [62]. - **Financial Analysis**: - ESS projects in **Inner Mongolia** are projected to achieve an internal rate of return (IRR) of **13%** over the next 10 years, incentivizing further development under the current policy framework [24]. - **Market Challenges**: - Despite the surge in project filings, there is a cautionary note that not all filings may convert to actual installations, as developers may rush to secure project resources [38]. - **Future Outlook**: - The ESS market is expected to continue evolving with increasing integration of renewable energy and advancements in technology, potentially leading to a more flexible and resilient power system [17][67]. This summary encapsulates the critical points discussed during the conference call, providing insights into the current state and future prospects of the ESS market in China.

Summary of Nari Technology - A Conference Call Company Overview - **Company**: Nari Technology - A - **Industry**: Power Equipment and Utilities Key Highlights 1. **New Order Growth**: - New order growth maintained at **20%** for the first 11 months of 2025, consistent with the growth rate in the first nine months of 2025. Strength noted in orders from the ESS (Energy Storage Systems) and renewables sectors [2][4][5] 2. **Overseas Revenue Contribution**: - Overseas ESS revenue accounted for approximately **60%** of total ESS revenue, with a **140%** year-over-year growth in overseas revenue. This contributed to **10%** of total revenue in the first half of 2025 [4][6] 3. **Expense Control**: - Management emphasized stringent control over selling, general, and administrative (SG&A) expenses, forecasting that SG&A growth will be much lower than revenue growth this year and in the coming years. R&D spending is expected to remain stable at around **6-7%** of revenue [6][7] 4. **Grid Capital Expenditure Focus**: - Key focus areas for grid capital expenditure during the 15th Five-Year Plan (FYP) include investments in UHV (Ultra High Voltage), power dispatch systems, ESS, and micro-grids. The State Grid aims to enhance its capacity to dispatch an additional **200GW** of renewable power annually [6][7] 5. **ESS Revenue Guidance**: - Management guided for over **Rmb4 billion** in revenue from ESS products, with overseas revenue contributing around **60%** of this total. The company specializes in ESS integration, offering products such as battery management systems and energy management systems [4][5] 6. **Technological Edge**: - Nari Technology is noted for its understanding of grid connections and automation, providing a competitive advantage in the control and monitoring of ESS systems. However, margins in this sector are currently low, ranging from **15-20%** due to intense competition [5][6] 7. **Investment Thesis**: - The investment thesis is based on expected benefits from policy tailwinds, including stronger renewable installations and grid capex driven by China's 2035 renewable capacity target and plans to double energy storage capacity by 2027 [7][8] 8. **Valuation and Price Target**: - The price target for December 2026 is set at **Rmb28.50**, based on a projected **22x** P/E ratio for 2027, implying a **4.1x** FY26E P/B and a **2.5%** dividend yield [8] Risks - Potential downside risks include lower-than-expected grid capex, margins, and UHV investments, which could impact the company's performance and valuation [9] Conclusion - Nari Technology is positioned to capitalize on growth in the ESS and renewables sectors, with a strong focus on expense control and strategic investments in grid technology. The company maintains an Overweight rating with a positive outlook based on anticipated policy support and market trends [2][7][8]

The information herein has been prepared by the Company solely for use in this presentation. The information contained in this presentation has not been independently verified. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. None of the Company or any of its affiliates, advisors or representatives will be liable (in negligence or otherwi ...

Accessibility StatementSkip Navigation SHANGRAO, China, Nov. 17, 2025 /PRNewswire/ -- JinkoSolar Holding Co., Ltd. ("JinkoSolar" or the "Company") (NYSE: JKS), one of the largest and most innovative solar module manufacturers in the world, today announced its unaudited financial results for the second quarter ended June 30, 2025 and third quarter ended September 30, 2025. Third Quarter 2025 Business Highlights Third Quarter 2025 Operational and Financial Highlights Second Quarter 2025 Operational and Financ ...

Summary of Key Points from the Conference Call Industry Overview - **Industry Focus**: China Renewables, specifically solar energy and energy storage systems (ESS) [2][3][4] Core Insights and Arguments - **Investor Interest**: The primary focus among investors is on solar's anti-involution development and the upgrade (U/G) on Sungrow related to AIDC (Automated Industrial Data Center) ESS use cases [2] - **GCL Tech's Position**: GCL Tech is recognized for its cost and technology leadership in the polysilicon market, although many investors are unaware of its advancements due to the prolonged down-cycle in the poly market [2][4] - **Sungrow's Potential**: There is a consensus among investors that Sungrow could see a re-rating if it strengthens its ties with AIDC, indicating a shift in valuation benchmarks for the company [2][15] - **Offshore Wind Growth**: Discussions highlight a structural growth trend in offshore wind, with Orient Cables being a notable mention [2] Market Dynamics - **Share Price Volatility**: On November 12, 2025, share prices of China solar stocks fell by 2-7%, contrasting with the HSCEI and SHCOMP indices which rose by 1% and 0%, respectively. This decline was attributed to softness in polysilicon futures [3][12] - **Polysilicon Price Trends**: Polysilicon prices have increased by approximately 50% over the last four months, driven by fears of anti-competition law enforcement, despite rising inventory levels due to production controls not yet being implemented [12][13] - **Policy Intervention**: Investors generally agree on the potential for policy intervention in the polysilicon market, especially following a high-profile media report [4][13] Company-Specific Insights - **Daqo, GCL Tech, Sungrow, and Orient Cables**: These companies are preferred picks within the China Renewables sector, all rated as Overweight (OW) [2][40] - **Yangtze Power**: Identified as a defensive name within the sector, also rated OW [2][40] - **Sungrow's Strategic Moves**: Sungrow is exploring new use cases for DC power supply components, which could significantly enhance its valuation if successful [33] Additional Considerations - **Investor Education**: There is a noted lack of understanding among some investors regarding the operational dynamics of ESS and its role in managing electricity demand fluctuations [22] - **PJM Capacity Prices**: The PJM Interconnection has seen a 22% increase in capacity prices for the 2025-2026 auction compared to the previous year, indicating rising demand for energy storage solutions [25][27] - **Future of ESS in China**: China has set a target of 170GW for ESS installations by 2027, highlighting a significant growth opportunity in the sector [38] Conclusion - The conference call provided valuable insights into the dynamics of the China Renewables sector, particularly in solar energy and energy storage. Key companies like GCL Tech and Sungrow are positioned for potential growth, driven by policy developments and market trends. Investors are encouraged to consider the long-term implications of these developments while navigating short-term volatility.

Summary of Key Points from the Conference Call Industry Overview - **Industry**: Energy Storage Systems (ESS) within the Alternative Energy sector - **Context**: The global energy system is experiencing a significant transition, with the combined cost of solar and wind energy plus storage now lower than fossil fuel generation in most major markets [1][13] Core Insights - **Energy Mix Shift**: By 2024, fossil fuels will supply approximately 77% of primary energy globally, while wind and solar will account for over 12% of global electricity, a threefold increase from a decade ago. The IEA projects that non-fossil energy will surpass coal as the main electricity source by 2025 [2][20] - **Economic Drivers**: Over the past 15 years, costs for solar and batteries have decreased by around 90%. The levelized cost of electricity (LCOE) for wind/solar plus storage is now lower than new coal and gas plants in major economies [3][20] - **Policy Support**: In China, provincial incentives such as Gansu's capacity payment mechanism and Inner Mongolia's subsidy have driven internal rates of return (IRRs) for utility-scale ESS projects to approximately 28% and 15%, respectively [3][20] Growth Projections - **ESS Installation Growth**: Global ESS installations are forecasted to grow at a compound annual growth rate (CAGR) of approximately 27% from 2025 to 2030, with China expected to account for nearly half of all utility-scale additions by 2030 [4][20] - **AIDC Demand**: The demand for electricity from AI Data Centers (AIDCs) is projected to more than double to 950 TWh by 2030, significantly driving the need for ESS [4][20] Investment Opportunities - **Value Concentration**: The ESS sector's value is concentrated in batteries (48-55% of turnkey cost) and system integration (19-21% of cost). Companies like CATL, Sungrow, Kehua, Wuxi Lead, and Senior are highlighted as top picks based on their exposure to high-value segments [5][25] - **Stock Ratings and Price Targets**: Key stocks featured include: - CATL: BUY, Price Target Rmb521.00 - Wuxi Lead: BUY, Price Target Rmb76.00 - Sungrow: BUY, Price Target Rmb233.96 [6][7] Additional Insights - **Intermittency Challenges**: The rise in renewable energy usage increases intermittency challenges and grid strain, necessitating enhanced storage solutions to maintain grid stability [2][20] - **Market Fragmentation**: The market for ESS is fragmented, with significant opportunities for consolidation among system integrators and battery manufacturers [27][33] Conclusion - The energy storage sector is positioned for explosive growth driven by economic advantages, policy support, and increasing demand from emerging technologies like AI. Investors are encouraged to focus on high-value segments within the ESS value chain to capitalize on this transition [5][25]

Financial Data and Key Metrics Changes - The company reported a record revenue of $7.1 million for Q3 2025, representing a 102% increase from the previous quarter [4][11] - Gross margin for Q3 was 51%, with service revenue contributing a gross margin of 78% and product revenue at 15% [11][12] - GAAP net loss for Q3 was $20.9 million, an improvement from a loss of $22.7 million in Q2 2025 [12] Business Line Data and Key Metrics Changes - The revenue split for Q3 was approximately 55% from service revenue related to automotive OEM customers and 45% from product revenue primarily from UZ Energy's energy storage system sales [11] - ESS revenue, following the acquisition of UZ Energy, accounted for about 45% of total revenue in Q3 [6] Market Data and Key Metrics Changes - The company anticipates significant growth in the energy storage system (ESS) market, projecting UZ Energy's revenue to grow from $10 million-$15 million in 2025 to potentially double in the following year [14][36] - The company is also targeting the drone market, leveraging its South Korea facility to meet the demand for high-energy density pouch cells [7][36] Company Strategy and Development Direction - The company is focused on an all-in-on AI strategy, highlighted by the launch of Molecular Universe 1.0, which aims to enhance battery material discovery and development [4][9] - A joint venture with Hyzen New Energy Materials was established to manufacture new electrolyte materials discovered through Molecular Universe, addressing specific market needs [7][18] - The company plans to expand its SaaS offerings and material supply, expecting revenue from materials to surpass SaaS revenue in the future [22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, emphasizing the transformative potential of Molecular Universe across various battery chemistries and applications [9][36] - The company expects to see a hardware-software integrated platform with multiple revenue streams, indicating a strong growth trajectory for 2026 and beyond [9][14] Other Important Information - The company exited Q3 with a strong liquidity position of $214 million, indicating sufficient capital to support growth initiatives [13][42] - The company repurchased 1.3 million Class A shares for a total investment of $1.6 million during the quarter [12] Q&A Session Summary Question: Can you talk about the Hyzen JV opportunity? - The Hyzen JV was formed in response to requests from Molecular Universe enterprise users, aiming to supply new electrolyte formulations discovered through the platform [17][18] Question: How do you expect the monetization of Molecular Universe to play out? - The monetization will be a mix of SaaS revenue and material supply, with material supply expected to generate higher revenue than SaaS [21][22] Question: Can you provide an update on the trial testing of Molecular Universe? - The number of enterprise users trialing Molecular Universe has increased to nearly 40, with plans for on-premise deployment for larger companies [24] Question: What are the different subscription options for Molecular Universe? - The company offers various enterprise tiers based on the depth of models and database size, with options for joint development for larger customers [29][31] Question: What is the growth outlook for UZ Energy and other revenue streams? - UZ Energy is expected to see significant growth, with potential doubling of revenue next year, alongside growth in the drone and EV markets [36]

Core Insights - Energy Plug Technologies Corp. has achieved its second sale in the U.S., indicating significant progress in its expansion into the U.S. energy storage market [1] - The company is delivering a 209-kilowatt-hour Energy Storage System to a client in the Southeastern U.S. for on-site construction operations, replacing conventional diesel generators [2] - The deployment of the Energy Storage System is driven by increasing demand for clean energy solutions, offering sustainability benefits, measurable savings, and enhanced operational control [3] Company Overview - Energy Plug Technologies develops and integrates advanced battery energy storage systems aimed at providing cleaner and more resilient energy solutions for utilities, industries, and communities globally [4] Key Benefits of Energy Storage System - The Energy Storage System will lead to significant reductions in fuel consumption and operating costs [8] - It will lower greenhouse gas emissions and produce minimal noise output [8] - The system provides reliable and stable power for demanding applications, with reduced maintenance requirements and a longer equipment lifespan [8]