Financial reports from photovoltaic companies show a stark contrast between those experiencing losses and those seeing gains. Since March, the photovoltaic sector has witnessed multiple instances of significant price increases. Just yesterday morning, the photovoltaic inverter sector saw a collective rise, with JiuZhou Group hitting a 20% increase, and Sunshine Power rising over 4%.
Currently, many photovoltaic companies are releasing their annual reports for 2024 and their first-quarter reports for 2025. Despite most businesses facing severe losses, the inverter sector continues to rise. What is driving this trend?
Performance and Capital Market Resonance
JiuZhou Group stood out as the biggest highlight in yesterday’s market, reaching a direct 20% limit up before slightly retreating in the afternoon. JiuZhou Group is deeply involved in smart distribution networks and the renewable energy sector, collaborating with major state-owned enterprises and companies like LONGi Green Energy and Goldwind Technology to develop wind power projects. Their manufacturing base provides products such as photovoltaic inverters, super lead-carbon batteries, and energy storage PCS/EPS.
Additionally, leading inverter companies like DeYea Co., Ltd. and HeWang Electric recently published their reports for 2024 and the first quarter of 2025, showcasing impressive financial data that exceeded expectations, resonating well with the capital markets.
According to the performance forecast released in April 2024, DeYea Co., Ltd. reported a net profit increase of 64.8% for the 2024 fiscal year. Their first-quarter report for 2025 indicates a net profit of between 650 million and 700 million yuan, marking a year-on-year increase of 50.15% to 61.70%.
HeWang Electric’s first-quarter report for 2025 showed an astounding net profit increase of over 90% compared to the previous year. This rebound in performance among inverter-related companies boosts market confidence, combined with policy benefits such as the 430 and 531 policies, which may collectively drive this bullish trend.
Furthermore, a report released today by the China Electricity Council analyzed the national electricity supply and demand situation for the first quarter of 2025. It revealed that by the end of the first quarter, the combined installed capacity of wind and solar power in China reached 1.48 billion kilowatts, surpassing thermal power capacity for the first time in history, thus providing strong support for the rising stock prices of companies like JiuZhou Group.
What Contributed to the Companies’ Remarkable Growth?
The burgeoning energy storage sector and emerging markets have played significant roles. As energy transition accelerates, inverters have become crucial hubs, expanding their application beyond traditional photovoltaic power stations to energy storage and other domains, driving further demand for inverters. According to a report from Wanlian Securities released in April, the rapid growth of global renewable energy installations, coupled with increased grid instability, is expected to sustain the demand for energy storage in the long run.
Data released by the General Administration of Customs on April 20 indicated a positive trend in overseas emerging markets for inverters. From January to March 2025, China’s total inverter exports amounted to 12.152 billion yuan, a year-on-year increase of 6.06%.
DeYea Co., Ltd.’s optimistic first-quarter performance forecast also confirmed the growing demand for energy storage in overseas markets. The company attributed this increase to heightened energy storage needs in emerging markets such as Southeast Asia, Africa, and the Middle East, driven by power supply shortages.
As a company that spans both photovoltaic and energy storage sectors, Pioneer New Energy saw a remarkable 239% increase on its first day of trading on April 2, reflecting the market’s high optimism regarding the photovoltaic-storage sector, suggesting sustained long-term demand for inverters.
Overall, the rise in the inverter market this year is the result of multiple converging factors. In the future, as the integration of photovoltaic and storage technologies develops, inverters may transition from being seen as mere “ancillary equipment” to becoming “core energy solutions.” However, it is crucial for related companies to remain vigilant about potential trade barriers and risks influenced by geopolitical factors.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/diverging-financial-results-in-the-pv-sector-whats-driving-the-surge-in-inverter-stocks/
