Shanxi Electric has released its annual report for 2024 along with its Q1 forecast for 2025, highlighting significant developments in the energy storage sector. The report indicates that the energy storage battery market is experiencing rapid growth, especially in overseas markets.
As of May 23, 2025, the company reported a revenue of 112.1 billion yuan, marking an increase of 49.8% compared to the previous year. The net profit attributable to shareholders was 29.6 billion yuan, reflecting a remarkable growth of 65.3%.
In Q1 of 2025, the company achieved a revenue of 25.7 billion yuan, which is a 36.2% increase year-over-year but a decrease of 19.6% compared to the previous quarter. The net profit for the same period was 7.1 billion yuan, up by 63.0%, with a quarter-over-quarter decline of 2.1%.
The energy storage device segment continues to expand significantly, with the company planning to launch several new products to tap into this growing market. In 2024, the revenue from the energy storage device segment is projected to reach 55.6 billion yuan, a 25.4% increase year-over-year, with a gross margin of 47.8%, slightly down by 3.5 percentage points.
In 2024, the company expects to produce 137.14 million units of energy storage devices. Among these, the energy storage inverter, string inverter, and micro inverter categories are anticipated to generate revenues of 54.06 million yuan, 41.06 million yuan, and 42.03 million yuan respectively, with actual revenue projected at 43.8 billion yuan, 7.9 billion yuan, and 3.5 billion yuan respectively.
Moving forward, the company aims to enhance its offerings in the European market by promoting its micro energy storage devices (solar energy storage). Additionally, it plans to launch energy storage solutions ranging from 100 kW to 2 MW to meet various customer needs.
By 2024, the energy storage battery business is projected to achieve a revenue of 24.5 billion yuan, an impressive increase of 177.2%, with a gross margin of 41.3%, up by 7.4 percentage points. The output value is expected to reach 46.5 million units, reflecting a substantial growth of 264.3%.
In the energy storage device and battery sectors, the company is establishing a robust service system to enhance customer engagement. By 2024, it aims to create several service centers across Europe, focusing on offering localized support and enhancing customer satisfaction.
Looking ahead, the company forecasts EPS for 2025-2027 to be 5.73/6.95/8.54, with respective PE ratios of 15.6/12.9/10.5, maintaining a stable “buy” rating. The demand for overseas markets remains strong, with expectations for continued growth in energy storage solutions.
In conclusion, Shanxi Electric is positioning itself as a leader in the energy storage sector, with robust growth projections and strategic expansions into international markets.
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