Shanxi Electric has published its annual report for 2024 and forecast for Q1 2025, highlighting significant growth in the energy storage battery sector and continuous expansion in overseas markets.
As of May 23, 2025, the company reported a revenue of 112.1 billion yuan, marking an increase of 49.8% year-on-year. The net profit attributed to the shareholders was 29.6 billion yuan, which is a remarkable growth of 65.3%. In Q1 2025, the actual revenue reached 25.7 billion yuan, reflecting a 36.2% year-on-year increase, although it was down 19.6% compared to the previous quarter. The net profit attributed to shareholders was 7.1 billion yuan, up 63.0% year-on-year but down 2.1% quarter-over-quarter.
The power conversion sector continues to thrive, with the company developing a wide range of products for the market. In 2024, the power conversion business’s revenue was 55.6 billion yuan, up 25.4% year-on-year, with a gross margin of 47.8%, down 3.5 percentage points.
In 2024, the total sales of power conversion devices reached 137.14 million units. Among these, energy storage converters, string inverters, and micro-inverters contributed 54.06 million, 41.06 million, and 42.03 million units, respectively. The respective revenue from these products amounted to 43.8 billion yuan, 7.9 billion yuan, and 3.5 billion yuan.
In 2024, the company aims to penetrate the European market by launching small-scale energy storage converters (solar energy storage). Additionally, it plans to introduce energy storage solutions ranging from 100kW to 2MW.
The energy storage battery sector is projected to grow rapidly, establishing a robust service system post-sales. In 2024, the energy storage battery segment is expected to generate 24.5 billion yuan in revenue, a staggering increase of 177.2% year-on-year, with a gross margin of 41.3%, up 7.4 percentage points.
During the year, the energy storage battery market is projected to see exports of 46.5 million units, a jaw-dropping increase of 264.3%.
In both the power conversion and energy storage sectors, the company intends to establish a local service network, enhancing its service capacity after-sales.
Looking ahead to 2025-2027, the EPS forecasts are 5.73, 6.95, and 8.54, with corresponding PE ratios of 15.6, 12.9, and 10.5, maintaining a “buy-A” rating.
External demand continues to exceed expectations, driven by increasing market competition, trading policy adjustments, and delays in new product launches.
Financial data and estimates are derived from the latest reports and analysis by Shanxi Electric, with a focus on revenue growth metrics.
This report is intended for informational purposes only and does not constitute investment advice.
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