2025-10-16 13:07Summary of China Energy Storage Conference Call Industry Overview - The conference call focused on the energy storage systems (ESS) market in China, highlighting significant growth and demand trends in September 2025. Key Points Market Demand and Growth - The PRC ESS market completed a total of 11.7GW/33.3GWh of energy storage systems, representing a 57.5% increase in capacity and a 103.7% increase in energy storage volume year-over-year [1] - Strong demand was noted particularly from Xinjiang and Inner Mongolia, which accounted for nearly half of the month's total orders [1] - By project type, 22.3GWh (or 67%) of the completed projects were EPC (including equipment), while 11GWh (or 33%) were ESS capacity [2] Pricing Trends - The average price of 2-hour lithium-ion ESS increased by 31% month-over-month to Rmb0.641/Wh, returning to the June average [3] - The average price of 4-hour systems rose by 9% month-over-month to Rmb0.464/Wh [3] - Price fluctuations were attributed to a large number of commercial and industrial energy storage cabinets and grid-connected string systems available in the market [3][6] Project Specifics - Standalone energy storage projects accounted for over 80% of the procurement volume, with five large projects exceeding 2GWh completed in Inner Mongolia and Xinjiang [2] - Renewable energy storage projects made up 7.5% of the total volume, with five projects completed in Gansu [2] Company Ratings - Sungrow (300274 CH) and Deye (605117 CH) received Buy ratings due to the positive outlook on PRC ESS demand and ASP increases [1] - Dongfang Electric (1072 HK) was also highlighted with a target price of HK$20.00, based on expected revenue and margin improvements in coal-fired power equipment [13] Risks - Key risks for Dongfang Electric include rising steel prices, decreasing ASP, and weak new order flows [14] - For Deye, risks include lower-than-expected energy storage demand and increased price competition among peers [16] - Sungrow faces risks from slower solar installation growth and intensified trade tensions affecting exports [18] Additional Insights - The report indicates a volatile pricing environment for ESS in 2025, with prices showing a slowly declining trend earlier in the year before rising again in September [6] - The analysis suggests that the increased demand and rising prices are favorable for PRC ESS manufacturers, indicating potential investment opportunities in this sector [1][3] This summary encapsulates the essential insights from the conference call regarding the current state and future outlook of the energy storage market in China, along with specific company evaluations and associated risks.