Ningbo Deye Technology Co. Ltd.: Mid‑Year Performance Outlook Amidst a Resilient Photovoltaic and Energy‑Storage Market
Ningbo Deye Technology Co. Ltd. (SH605117) announced that it will hold a mid‑year performance briefing for 2025 on 10 September 2025. The company, listed on the Shanghai Stock Exchange, is a leading manufacturer of heat exchangers, evaporators, air‑conditioning condensers, as well as a range of related appliances such as frequency‑conversion control chips, dehumidifiers, air purifiers and solar air conditioners.
Market Context
The Chinese A‑share market for photovoltaic (PV) and energy‑storage (ES) concepts has remained buoyant in early September. On 8 September, a group of PV and ES stocks—Sun Power (300274.SZ), Ningbo Deye (605117.SH), Jinlang Technology (300763.SZ), Daquan Energy (688303.SH), and Trina Solar (688599.SH)—all rose more than five percent. Sun Power’s share price climbed 1.21% to 136.98 yuan, and its market value hit a new record of 284 billion yuan, underscoring the sector’s strength.
Analysts attribute the sustained rally to a confluence of factors:
- Upstream cell supply constraints – Even though total cell production capacity remains ample, delivery schedules are highly concentrated, creating a temporary bottleneck and upward pressure on prices.
- Rising overseas demand – European and U.S. markets are expanding their storage fleets as renewables penetration rises, providing a strong tailwind for Chinese ES manufacturers.
- Policy shifts – The 2025 policy reform that removes mandatory storage requirements from new renewable projects has accelerated the transition from policy‑driven to market‑driven storage deployment. This has pushed the domestic market into a phase of high growth, with new storage projects in 2025 reaching 56.12 GWh, up 68 % year‑on‑year.
In this environment, Ningbo Deye’s position as a diversified supplier of key PV and ES components—particularly its frequency‑conversion control chips that are integral to inverter operation—places it well to capture expanding demand.
Investor Sentiment and Guidance
The company’s upcoming performance briefing is expected to clarify its 2025 outlook. While the announcement itself is brief, it signals a proactive communication strategy aimed at maintaining investor confidence amid volatile commodity prices and a dynamic competitive landscape.
The company’s fundamentals remain solid:
| Metric | Value |
|---|---|
| Close price (8 Sep 2025) | 72.88 CNH |
| 52‑week high | 79.87 CNH |
| 52‑week low | 49.88 CNH |
| Market cap | 54.76 billion CNH |
| P/E ratio | 18.95 |
A price‑to‑earnings ratio of 18.95 positions Ningbo Deye near the upper end of its peer group, reflecting market expectations of steady earnings growth as demand for PV and ES equipment rises.
Analyst Recommendations
Several research houses have highlighted the broader sector dynamics that could benefit Ningbo Deye:
- Huachuang Securities (29 Aug 2025) noted that rising silicon material prices and the ongoing “anti‑congestion” policy are likely to drive profitability across the PV supply chain. They highlighted the company’s strong silicon‑material cost advantage as a competitive moat.
- Infolink Consulting observed that prices for lithium‑ion energy‑storage cells have increased modestly but steadily, suggesting a price‑upward trend that could improve margins for inverter and control‑chip manufacturers.
- Sun Power projected a compound annual growth rate of 20‑30 % for the global storage market in the coming years, with Europe emerging as a pivotal growth region due to its high renewable mix and evolving market mechanisms such as dynamic pricing and capacity markets.
These analyses reinforce the view that the sector’s valuation could recover from its historically low levels, particularly as the demand for storage‑integrated PV systems accelerates.
Risks
Despite the favorable backdrop, several risks remain:
- Demand uncertainty – If end‑user demand in key markets such as Europe and the United States does not meet expectations, growth could stall.
- Competitive pressures – Intensifying competition could erode margins, especially if lower‑cost entrants gain market share.
- Raw‑material volatility – Prices for silicon, lithium, and cathode materials could spike, impacting component costs.
- Trade and regulatory changes – Geopolitical tensions or new tariffs could disrupt supply chains and market access.
Bottom Line
Ningbo Deye Technology Co. Ltd. is poised to benefit from a confluence of macro‑economic and industry‑specific trends that favor PV and energy‑storage component manufacturers. Its upcoming mid‑year briefing will provide critical insights into its revenue and earnings trajectory for 2025, offering investors a clearer view of how well the company can navigate a market that is simultaneously characterized by supply constraints, rising overseas demand, and a shift toward market‑driven storage deployment.