The photovoltaic sector experienced a notable surge today, April 1, with Sunshine Power rising over 4%. The Low-Fee New Energy Dual Giants ETF (516290), a leading photovoltaic ETF, saw an increase of 1.8%, marking a strong rebound after three consecutive days of decline. Additionally, the Battery 50 ETF (159796) rose by 1.71%, attracting significant investment following recent dips.
Noteworthy individual stocks within the renewable energy sector also saw substantial increases, with Jinlong Technology climbing over 9%, Goodwe rising more than 6%, and both Quartz Co. and Sunshine Power increasing over 4%. Other companies like Shineng Electric and Jinkai New Energy rose over 3%, while Meguli and Hangke Technology gained over 1%. In contrast, CATL and Sanhua Intelligent Control experienced minor pullbacks.
On the regulatory front, on March 31, relevant authorities released a draft for public consultation on the Implementation Rules for the Issuance of Renewable Energy Green Power Certificates (Trial). These rules apply to renewable energy generation projects within China, including wind, solar, conventional hydropower, biomass, geothermal, and ocean energy.
The latest data released on March 28 indicates that the global energy storage industry is projected to add 79.2 GW/188.5 GWh in new installations for 2024, representing an impressive year-on-year growth of 82.1%. Specifically, China’s energy storage capacity is expected to reach 41.54 GW/107.13 GWh, reflecting a 110% growth compared to the previous year, thus capturing 56.83% of the global market. In the commercial and industrial storage sector, global new installations are forecasted to be around 12.749 GWh, a 52.7% increase from last year, with China making up approximately 64.32% of that growth.
In terms of stock performance, Sunshine Power, a key component of both the Low-Fee New Energy Dual Giants ETF (516290) and Battery 50 ETF (159796), ranks first globally in terms of shipment volume.
Overall, positive factors continue to accumulate in the renewable energy sector, indicating a potential turnaround for photovoltaic and battery markets. The Low-Fee New Energy Dual Giants ETF (516290) and Battery 50 ETF (159796) both feature low comprehensive fees of only 0.2%, with management fees at 0.15% and custody fees at 0.05%, making them among the most competitive in the market.
Longjiang Securities emphasizes that the sentiment in the photovoltaic sector has bottomed out and is positioned for an upward trajectory. The combination of domestic installation surges and supply-side discipline is driving ongoing price increases across the industry chain. Expectations for the second quarter include a recovery in both volume and profit, bolstered by advancing supply-side reform policies. Key areas to watch include:
- Supply-side discipline with potential turning points for leading suppliers and auxiliary materials.
- New technology implementations, particularly in areas such as BC, silver-plated copper, and copper paste.
CITIC Securities highlights the photovoltaic sector as worthy of attention, predicting positive trends based on four dimensions: industry chain pricing, demand expectations, supply-side policies, and changes within the industry. The rebound in chain prices and shifts in corporate behavior are expected to provide support for the industry. Additionally, demand resilience is anticipated under the 2030 national renewable energy consumption targets, with ongoing technical upgrades likely to enhance product quality and facilitate corporate transformations.
In the energy storage market, Longjiang Securities notes that the household storage segment has entered a phase of growth, with European channel inventory depletion nearing completion and emerging markets beginning their peak shipping season. Global demand for large-scale storage remains stable, with industry chain prices stabilizing, leading to valuation recoveries.
In the lithium battery sector, demand has exceeded expectations, supporting ongoing profitability improvements, with price increases across the industry chain. The introduction of new technologies, such as solid-state batteries and silicon-carbon anodes, is accelerating.
The photovoltaic industry is poised for a fundamental recovery, with sentiment expected to shift positively. Investors should closely monitor the Low-Fee New Energy Dual Giants ETF (516290), which features competitive management and custody fees, significantly lower than the market average. As the core sectors of new energy show promising growth, including advancements in battery technology, consider exploring lower-cost entry opportunities in the Battery 50 ETF (159796), with options available for external investments.
Risk Warning: The information provided, including but not limited to individual stocks, commentary, predictions, charts, and indices, is for reference only. Investors are responsible for their own investment decisions. This content does not constitute investment advice, and the company is not liable for any direct or indirect losses resulting from its use. The Low-Fee New Energy Dual Giants ETF and Battery 50 ETF are medium-risk products, suitable for investors assessed as balanced or higher based on risk tolerance evaluations. The indices do not fully represent the entire stock market, and the average return of constituent stocks may deviate from the broader market average. Investing involves risks, and caution is advised.
