China's export demand for inverters is strong, Sungrow and Deye Co., Ltd. increase shareholder returns (CITI)
Citigroup's report pointed out that China's inverter export growth accelerated, with exports rising year-on-year and month-on-month.
Citigroup's report pointed out that China's inverter export growth accelerated, with exports rising year-on-year and month-on-month. Zhejiang and Anhui, as the main producing areas, performed divergently. The export value of solar modules increased but the export volume fell year-on-year. Citi highlights Sungrow and Deye. The two companies respectively proposed share repurchases and mid-term dividend plans to increase shareholder returns, and provided target stock prices and valuation models. The market's focus on China's inverter industry may shift from "demand growth" to "profitability and shareholder returns", with Sungrow and Deye having outstanding performance in this regard. One-sentence conclusion: China's inverter industry's export boom continues, but investment focus is shifting to leading companies with better shareholder return policies. Sungrow and Deye have provided investors with more attractive value returns through buybacks and dividends. Positive/negative: Positive for Sungrow and Deye. The market may not yet fully react to the two companies' efforts to boost shareholder returns, especially when combined with their strong export businesses. Catalysts: 1) Inverter export data in subsequent months; 2) Share buyback execution progress of Sungrow and Deye; 3) Specific implementation of the mid-term dividend plan.