Clenergy Technologies (603628.SH): Initial Coverage

Clear Currents, Enduring Growth: Leveraging Global PV Dominance to Unlock the Residential Storage Alpha

Date: October 16, 2025
Rating: OUTPERFORM (Initial Coverage)
Current Price: CNY 13.43
Target Price: Implied Upside via Valuation Re-rating
Analysts: Deng Yongkang, Lin Yutao, Zhu Biye, Wang Yiru

Executive Summary

Clenergy Technologies (603628.SH), a leading global provider of photovoltaic (PV) mounting systems and smart energy solutions, presents a compelling investment case characterized by a robust recovery in core earnings, strategic expansion into high-margin international markets, and the emergence of a second growth curve in residential energy storage. Founded in 2007 and listed on the Shanghai Stock Exchange in 2017, Clenergy has evolved from a pure-play mounting system manufacturer into an integrated "PV + Storage + Power" ecosystem provider. Our initial coverage initiates with an OUTPERFORM rating, underpinned by three primary pillars:

1. Resilient Core Business & Global Market Leadership: Clenergy maintains its position as the #1 PV mounting brand in Australia for 17 consecutive years and holds significant market share in key European markets (UK, Germany, Romania). The company is successfully transitioning from a distributed-only focus to a dual-engine model driven by both distributed and utility-scale ground-mounted projects. We forecast a revenue CAGR of ~21% from 2024 to 2027, driven by the stabilization of global PV installations and the increasing penetration of high-value tracker systems.
2. Strategic Entry into Residential Storage Catalyzed by Australian Policy: The launch of Australia’s AUD 2.3 billion "Cheaper Home Batteries" subsidy program in July 2025 serves as a potent catalyst for Clenergy’s newly launched TNK series residential storage systems. Leveraging its entrenched distribution network and brand loyalty in the Australian residential PV sector, Clenergy is uniquely positioned to capture a disproportionate share of this emerging demand, creating a high-margin second growth curve starting in 2026.
3. Valuation Attractiveness & Earnings Inflection: Following a challenging 2024, Clenergy’s 1H2025 results signal a decisive turnaround, with net profit surging 62.4% YoY to CNY 87 million, aided by operational leverage and favorable forex movements. Trading at an estimated 24x/18x/14x P/E for 2025/2026/2027, the stock is undervalued relative to peers in the PV mounting and residential storage sectors, which trade at average multiples of 37x/23x/17x respectively. The market has yet to fully price in the margin expansion potential from the storage business and the structural shift towards higher-margin overseas sales.

We project total revenues of CNY 2.46 billion, CNY 2.98 billion, and CNY 3.44 billion for 2025, 2026, and 2027, representing year-over-year growth rates of 27.9%, 21.5%, and 15.2%. Corresponding net profits attributable to shareholders are forecast at CNY 152 million, CNY 207 million, and CNY 257 million. The convergence of steady PV demand, technological upgrades in tracking systems, and the nascent but high-potential storage segment creates a favorable risk-reward profile for institutional investors seeking exposure to the next phase of the global energy transition.

Key Takeaways

1. Financial Turnaround Confirmed: 1H2025 Marks the Inflection Point

Clenergy’s financial performance in the first half of 2025 demonstrates a strong recovery from the headwinds faced in 2024.
* Revenue Growth: 1H2025 revenue reached CNY 1.205 billion, a year-over-year increase of 37.98%. This was driven by a combination of domestic rush-to-install trends in China and a robust recovery in overseas demand, particularly in Europe and emerging Asian markets.
* Profitability Surge: Net profit attributable to shareholders climbed 62.44% YoY to CNY 87 million. While gross margins compressed slightly to 17.46% (down 4.58 ppts YoY) due to intense domestic competition and raw material fluctuations, net margins expanded to 7.21% (up 0.99 ppts YoY).
* Forex Tailwinds: A significant contributor to the bottom-line beat was the realization of CNY 47.19 million in foreign exchange gains in 1H2025, resulting from the appreciation of the RMB against certain currencies and effective hedging strategies. This reduced the overall expense ratio by 6.15 percentage points compared to full-year 2024 levels.
* Business Mix Shift: The PV mounting segment remains the core revenue driver (72.28% of 1H2025 revenue), growing 25.64% YoY. However, the PV power station development and construction segment saw explosive growth of 85.26% YoY, contributing 25.56% of revenue, indicating successful downstream integration.

2. Global PV Market: From Hyper-Growth to Sustainable Expansion

The global PV industry is transitioning from a phase of erratic, policy-driven hyper-growth to a more mature, steady-state expansion model.
* Volume Outlook: According to SMM data, global PV installations grew from 145GW in 2020 to 602GW in 2024. While the growth rate is moderating, the absolute volume remains substantial. We project a Compound Annual Growth Rate (CAGR) of 6% for global new installations from 2025 to 2030, reaching approximately 847GW by 2030. PV is expected to account for 80% of all renewable energy growth during this period.
* Regional Dynamics:
* China: Remains the dominant force, expected to account for over 40% of global new installations in 2025. Domestic policy support and the economic viability of solar continue to drive utility-scale and C&I (Commercial & Industrial) projects.
* Europe: Despite challenges such as low electricity prices and grid congestion, long-term decarbonization targets and coal phase-out plans sustain strong demand. Distributed PV relies on diminishing subsidies, while utility-scale projects are driven by government tenders and PPAs.
* United States: Policy uncertainty under the "Trump 2.0" scenario may cause short-term volatility, but the long-term trajectory for high growth remains intact due to state-level mandates and corporate ESG commitments.
* Emerging Markets: Regions including the Middle East, North Africa, India, Latin America, and Southeast Asia are becoming critical growth engines. Driven by rigid power demand, abundant solar resources, and urgent energy transition goals, these markets offer Chinese manufacturers an avenue to escape domestic overcompetition. In 2024, 34 countries added over 1GW of new capacity, highlighting the diversification of global demand.

3. Product Evolution: The Rise of Trackers and Integrated Solutions

The PV mounting industry is undergoing a value chain upgrade, shifting from cost-based competition to efficiency-based differentiation.
* Tracker Penetration: Tracking mounts, which adjust panel angles to follow the sun, can increase power generation by over 20% compared to fixed-tilt systems. As electricity markets become more市场化 (market-oriented), the ability of trackers to generate more power during high-price peak hours (morning/evening) enhances their economic value. SMM forecasts global tracker demand to grow from 124GW in 2025 to 166GW in 2030, with penetration rising from 39% to 46%.
* Clenergy’s Competitive Edge:
* Distributed Leadership: Clenergy’s "PV-ezRack" series is the market leader in Australia and holds top-tier positions in the UK and German residential markets. The company offers over 200 specialized SKUs tailored to diverse roof types and building standards globally.
* Utility-Scale Expansion: Since 2023, Clenergy has aggressively expanded its ground-mounted business. Revenue from ground-mounted systems grew 75.62% in 2023 and another 18.93% in 2024 to CNY 754 million.
* Tracker Technology: The proprietary "EzTracker" system has secured certifications from TÜV SÜD, MCS, and passed rigorous wind tunnel tests (CPP, RWDI). It features durable zinc-aluminum-magnesium steel and self-lubricating POM bearings, ensuring longevity and low O&M costs. Major projects include the 336MW Hainan Prefecture project in Qinghai, China, and various installations in Vietnam, Hungary, and Thailand.
* Integrated Service Model: Unlike pure hardware manufacturers, Clenergy provides end-to-end solutions including design, installation, and smart O&M. This "Product + Service" model enhances customer stickiness and provides valuable field data to refine product design. To date, Clenergy products have been installed in over 50 countries, covering 39GW of capacity, 1 million+ rooftop sites, and 15,000+ ground stations.

4. The Second Growth Curve: Residential Storage in Australia

Energy storage is the critical enabler for high renewable penetration, and Clenergy is strategically positioning itself to capitalize on this trend, particularly in its stronghold market of Australia.
* Market Catalyst: In July 2025, the Australian Federal Government launched the "Cheaper Home Batteries" program, allocating AUD 2.3 billion to subsidize 30% of the installation cost of residential battery systems. This policy directly addresses the primary barrier to adoption—high upfront costs—and is expected to trigger a surge in demand.
* Australia’s Energy Transition: Australia aims to reduce emissions by 43% by 2030 (vs. 2005) and achieve net-zero by 2050. A key component of this strategy is a five-fold increase in residential PV (from 15GW to 75GW) and a thirty-fold increase in storage capacity (from 2GW to 61GW) by 2050. The intermittency of renewables necessitates massive storage deployment to stabilize the grid.
* Clenergy’s Product Offering: The company has launched the TNK Series residential storage system, its first single-phase hybrid solution. Key features include:
* Safety & Durability: IP65 protection rating suitable for indoor/outdoor use.
* Intelligence: Built-in Energy Management System (EMS) to maximize self-consumption of solar energy.
* Compliance: Certified to IEC61000 standards; batteries UN38.3 certified and listed on the Clean Energy Council (CEC) approved list, ensuring grid compatibility in Australia.
* Channel Synergy: Clenergy’s most significant advantage is its existing distribution network. With 17 years of dominance in the Australian rooftop PV market, the company has established trust with installers and homeowners. Cross-selling storage units to its existing PV customer base allows for lower customer acquisition costs and faster market penetration compared to new entrants. We expect storage revenue to contribute CNY 200 million in 2026 and CNY 400 million in 2027, with gross margins estimated at 30%, significantly accretive to the overall mix.

5. Valuation and Investment Thesis

• Relative Valuation: We compare Clenergy with peers in the PV mounting sector (Arctech Solar, Yi Hua Shares) and residential storage sector (GoodWe, Solis, Ginlong, Pylontech). The peer group averages a 2025E P/E of 37x and a 2026E P/E of 23x. Clenergy trades at a discount, with a 2025E P/E of 24x and 2026E P/E of 18x.
• Re-rating Potential: The current valuation does not fully reflect:
  1. The higher profitability of the expanding overseas business mix.
  2. The optionality and future earnings contribution from the residential storage segment.
  3. The operational leverage gained from scale in both mounting and EPC services.
• Recommendation: Given the solid fundamentals, clear growth visibility, and attractive valuation relative to peers, we initiate coverage with an OUTPERFORM rating.

Company Overview: Building a Integrated Clean Energy Ecosystem

1.1 Corporate History and Strategic Evolution

Clenergy Technologies Co., Ltd. was established in 2007 in Xiamen, Fujian Province, China. The company listed on the Main Board of the Shanghai Stock Exchange in 2017. From its inception, Clenergy has been dedicated to the photovoltaic industry, evolving through three distinct strategic phases:

1. Product Foundation (2007-2015): Focused on the R&D and manufacturing of PV mounting systems. The company identified the Australian market early, launching the "PV-ezRack" series in 2009, which quickly achieved #1 market share in Australia. This period established Clenergy’s reputation for quality and innovation.
2. Global Expansion & Localization (2016-2020): Established manufacturing bases in Xiamen and Tianjin, and set up subsidiaries/offices in key markets including Australia, Japan, Thailand, and the Philippines. This "International Market + Localized Service + Global Supply Chain" model allowed Clenergy to respond rapidly to local needs while maintaining cost efficiencies.
3. Ecosystem Integration (2021-Present): Expanded beyond hardware into downstream PV power station investment, construction, and smart O&M. Recently, the company has entered the power electronics and energy storage sectors, aiming to provide comprehensive "Source-Grid-Load-Storage" solutions.

Figure 1: Clenergy’s Development Milestones
(Note: Visual representation of timeline from 2007 founding to 2025 storage launch)

1.2 Shareholding Structure and Management Team

Clenergy boasts a stable shareholding structure with a mix of founder control, strategic institutional backing, and public float.

• Controlling Shareholder: Mr. Hong Daniel is the actual controller, holding 29.73% of shares directly as of Q2 2025.
• Co-Founder: Mr. Wang Xiaoming holds 5.96% (directly and indirectly via Heying Investment).
• Strategic Investor: Xiamen Financial Holdings Co., Ltd. holds 15.07%, providing state-owned enterprise (SOE) backing. This relationship facilitates access to local resources, financing, and large-scale infrastructure projects in China.
• Top 10 Shareholders: Collectively hold 54.42% of the company, indicating a stable ownership base resistant to hostile takeovers or volatile trading pressures.

Table 1: Key Management and Board Members

The management team combines technical expertise, international business acumen, financial discipline, and regulatory insight, providing a robust foundation for sustainable growth.

1.3 Business Segments and Revenue Composition

Clenergy operates across three primary business segments, with PV Mounting Systems remaining the dominant revenue contributor.

1. PV Mounting Systems (Core Business)
* Products: Distributed rooftop mounts (SolarRoof®, Ascent®), fixed-tilt ground mounts, and intelligent tracking systems (EzTracker®).
* Market Position: #1 in Australia (17 years); Top tier in UK, Germany, Romania.
* Performance: In 1H2025, this segment generated CNY 871 million in revenue (+25.64% YoY), accounting for 72.28% of total revenue.

2. PV Power Station Development & Construction (EPC)
* Scope: Engineering, Procurement, and Construction services for utility-scale and C&I projects.
* Strategy: Leverages mounting expertise to offer turnkey solutions, enhancing client stickiness.
* Performance: 1H2025 revenue of CNY 308 million (+85.26% YoY), representing 25.56% of total revenue. This rapid growth reflects increased participation in domestic Chinese projects.

3. PV Power Electronics & Storage (Emerging Growth)
* Products: Inverters, optimizers, and the new TNK residential storage series.
* Performance: 1H2025 revenue of CNY 14 million (+708.22% YoY), though still small at 1.17% of total revenue. This segment is poised for exponential growth as storage products scale in 2026-2027.

Figure 6: Revenue Breakdown by Segment (2021-1H2025)
(Visual chart showing the dominance of Mounting Systems, the rise of EPC, and the nascent Storage segment)

Financial Metrics Analysis (1H2025):
* Gross Margin: Declined to 17.46% from 22.04% in 1H2024. Reasons include:
* Increased proportion of domestic sales (lower margin than export).
* Intense price competition in the Chinese mounting market.
* Fluctuations in raw material costs (steel/aluminum).
* Net Margin: Improved to 7.21% from 6.22% in 1H2024.
* Expense Ratio: Total operating expense ratio dropped to 8.49% (from 14.64% in FY2024).
* Financial Expenses: Decreased by 4.86 ppts due to CNY 47.19 million forex gain.
* Management/R&D/Sales: All saw slight reductions or stability, indicating improved operational efficiency.

Industry Analysis: Global PV and Storage Trends

2.1 Global PV Market: Steady Growth Amidst Structural Shifts

2.1.1 Volume Trajectory
The global PV market has matured. After a period of explosive growth driven by aggressive carbon neutrality pledges, the market is now entering a phase of "steady ascent."
* Historical Data: Global installations surged from 145GW (2020) to 602GW (2024).
* Forecast: SMM predicts a CAGR of 6% from 2025-2030, reaching 847GW by 2030.
* Implication for Clenergy: While volume growth slows, the absolute addressable market remains vast. For a market leader like Clenergy, steady industry growth translates to predictable revenue streams, allowing for better capacity planning and inventory management.

2.1.2 Regional Dynamics and Opportunities

2.1.3 The Tracker Revolution
The shift from fixed-tilt to tracking mounts is a key value driver.
* Efficiency Gain: Trackers boost generation by 10-20%, crucial in markets with time-of-use electricity pricing.
* Cost Parity: As tracker manufacturing scales, the LCOE (Levelized Cost of Energy) advantage over fixed systems widens.
* Market Share: Global tracker penetration is expected to rise from 39% (2025) to 46% (2030).
* Clenergy’s Position: The EzTracker system is technologically competitive, featuring anti-corrosion materials and smart sensors. Successful deployment in large projects (e.g., 336MW in Qinghai) validates its reliability and opens doors for further utility-scale contracts.

2.2 Global Energy Storage: The Next Frontier

2.2.1 Market Scale and Growth
* Global Size: The global energy storage market reached $62.7 billion in 2024 (+73% YoY).
* Installations: Cumulative operational capacity hit 372GW by end-2024. New installations in 2024 were 79.2GW/188.5GWh (+82.1% YoY in GWh terms).
* Forecast: IEA and BNEF predict a 30-40% CAGR for new storage installations through 2030, with total capacity reaching 358-585GW. Investment could reach $326 billion.

2.2.2 Regional Leaders
* China: The undisputed leader, accounting for 59% of global installations in 2024. Dominant in C&I storage.
* Europe & US: Strong growth in residential and utility-scale storage, driven by energy security concerns and policy incentives.
* Australia: A unique market due to its high rooftop PV penetration. The grid requires decentralized storage to manage voltage fluctuations and duck curves.

2.2.3 Policy Catalyst: Australia’s AUD 2.3 Billion Subsidy
The "Cheaper Home Batteries" program is a game-changer.
* Mechanism: Direct subsidy covering 30% of installation costs.
* Impact: Reduces payback period for homeowners, making storage economically viable for a broader demographic.
* Complementary Policies: State-level initiatives (VIC, NSW, ACT) offer additional rebates and zero-interest loans, creating a multi-layered support framework.

Table 4: Summary of Australian Storage Policies

This policy environment creates a near-term demand spike that Clenergy is perfectly positioned to capture.

Competitive Analysis: Clenergy’s Moat

3.1 Technological Leadership and R&D

Clenergy invests consistently in R&D, with expenses maintaining above 2% of revenue.
* Team: 132 R&D personnel (15.53% of total staff) as of Dec 2024.
* Patents & Certifications: Extensive portfolio covering structural design, corrosion resistance, and smart tracking algorithms. Certifications from TÜV, MCS, UL, and CEC ensure global market access.
* Product Innovation:
* SolarRoof®: Modular design for quick installation on varied roof types.
* EzTracker®: High-wind resistance, self-lubricating bearings, IoT-enabled monitoring.
* TNK Storage: Integrated EMS, high safety standards, seamless PV integration.

3.2 Global Supply Chain and Localized Service

• Manufacturing: Bases in Xiamen and Tianjin allow for economies of scale.
• Logistics: Optimized global shipping routes reduce lead times.
• Local Presence: Subsidiaries in Australia, UK, Germany, US, Japan, etc., provide pre-sales technical support and post-sales service. This local touch is critical in winning bids from large utilities and maintaining relationships with residential installers.

3.3 Brand Equity and Customer Loyalty

• Australia: 17 years as #1 brand. High installer loyalty.
• Europe: Growing recognition in UK and Germany for quality and reliability.
• Trust: In the B2B and B2C energy sector, brand trust is paramount. Installers prefer brands that minimize callback risks. Clenergy’s track record reduces perceived risk for partners.

3.4 Integrated Solution Capability

By offering mounting, EPC, and increasingly storage/inverters, Clenergy can bundle products. This increases the average order value (AOV) and makes it harder for competitors to displace them. For example, a utility client can source mounts, trackers, and EPC services from one vendor, simplifying procurement and accountability.

Financial Analysis and Forecasts

4.1 Historical Performance Review

Revenue Trends:
* 2024: Revenue of CNY 1.919 billion (-0.9% YoY). A year of consolidation amidst global supply chain adjustments and intense domestic competition.
* 1H2025: Revenue of CNY 1.205 billion (+37.98% YoY). Strong rebound driven by overseas demand and domestic EPC growth.

Profitability Trends:
* 2024: Net profit of CNY 90 million (-46.7% YoY). Pressured by lower margins and higher expenses.
* 1H2025: Net profit of CNY 87 million (+62.44% YoY). Recovery driven by forex gains and operational efficiency.

Balance Sheet Health:
* Cash Flow: Operating cash flow remains positive, supporting ongoing R&D and expansion.
* Debt: Manageable debt levels with support from Xiamen Financial Holdings.
* Assets: Steady increase in fixed assets and inventory to support production scaling.

4.2 Revenue and Profit Forecast (2025-2027)

We project a strong growth trajectory based on the following assumptions:

1. PV Mounting Systems:
* Assumptions: Continued leadership in Australia; Market share gains in Europe and Emerging Markets; Growth in tracker sales.
* Forecast:
* 2025E: CNY 1.906 billion (+20% YoY)
* 2026E: CNY 2.192 billion (+15% YoY)
* 2027E: CNY 2.411 billion (+10% YoY)
* Margins: Gross margin expected to improve from 15% in 2025 to 17% in 2026-2027 as higher-margin overseas and tracker sales mix increases.

2. PV Power Station EPC:
* Assumptions: Steady growth in domestic C&I and utility projects.
* Forecast:
* 2025E: CNY 300 million (+141% YoY, reflecting 1H2025 momentum)
* 2026E: CNY 315 million (+5% YoY)
* 2027E: CNY 331 million (+5% YoY)
* Margins: Stable at ~11.5%, typical for EPC businesses.

3. PV Power Station Investment:
* Assumptions: Gradual expansion of owned asset portfolio; Digital O&M improves yield.
* Forecast:
* 2025E: CNY 190 million (+20% YoY)
* 2026E: CNY 209 million (+10% YoY)
* 2027E: CNY 220 million (+5% YoY)
* Margins: High and stable at 62%, contributing significantly to bottom-line profit.

4. PV Power Electronics:
* Assumptions: Modest growth in inverters/optimizers.
* Forecast:
* 2025E: CNY 30 million
* 2026E: CNY 38 million
* 2027E: CNY 46 million
* Margins: Stable at 24%.

5. Energy Storage (New Segment):
* Assumptions: Launch of TNK series in 2025; Ramp-up in 2026 driven by Australian subsidy; Expansion to other markets in 2027.
* Forecast:
* 2025E: Negligible (Pilot/Early Sales)
* 2026E: CNY 200 million
* 2027E: CNY 400 million (+100% YoY)
* Margins: Estimated at 30%, reflecting higher value-add compared to pure mounting hardware.

Table 5: Detailed Business Segment Forecast

Consolidated Income Statement Forecast:

4.3 Valuation Analysis

We employ a relative valuation method, comparing Clenergy to a peer group of listed companies in the PV mounting and residential storage sectors.

Peer Group Selection:
* PV Mounting: Arctech Solar (688408.SH), Yi Hua Shares (002897.SZ).
* Residential Storage/Inverters: GoodWe (688390.SH), Solis (688717.SH), Ginlong (300763.SZ), Pylontech (688063.SH).

Valuation Multiples:

Source: Wind Consensus Estimates, Price as of Oct 15, 2025.

Analysis:
Clenergy trades at a discount to the peer average, particularly in the 2025 and 2026 forward multiples. This discount may reflect:
1. Its historical perception as a lower-margin hardware manufacturer.
2. Lag in market recognition of its storage potential.

However, given the projected acceleration in earnings growth (68% in 2025, 36% in 2026) and the strategic entry into the high-multiple storage sector, we believe this discount is unwarranted. As the storage business scales and contributes to profits, Clenergy’s valuation should re-rate towards the higher end of the peer group, particularly closer to the storage-focused peers like Solis and GoodWe.

Implied Target:
Applying a conservative 2026E P/E of 20x (below the storage peer average but above the mounting peer average) to our 2026E EPS of CNY 0.76 yields a target price of CNY 15.20. This represents an upside of ~13% from the current price of CNY 13.43, excluding potential multiple expansion if the storage narrative gains traction.

Risks / Headwinds

While the investment thesis is strong, investors must consider the following risks:

1. Raw Material Price Volatility

• Exposure: Steel and aluminum account for ~80% of the cost of goods sold for mounting systems.
• Risk: Sharp increases in metal prices can compress margins if Clenergy cannot pass costs onto customers. Conversely, falling prices can lead to inventory write-downs or intensified price competition.
• Mitigation: Clenergy employs hedging strategies and adjusts pricing clauses in long-term contracts. However, sudden spikes remain a risk.

2. Foreign Exchange Fluctuations

• Exposure: Significant portion of revenue is in AUD, EUR, USD, while costs are primarily in CNY.
• Risk: Appreciation of the CNY reduces the value of overseas revenue when converted back, impacting margins. 1H2025 benefited from forex gains; a reversal could hurt future earnings.
• Mitigation: Natural hedging via overseas sourcing and financial hedging instruments.

3. Market Expansion Risks

• Execution Risk: Success in new markets (e.g., storage in Australia, trackers in emerging markets) is not guaranteed. Competitors may react aggressively.
• Policy Risk: Changes in subsidy programs (e.g., reduction in Australian battery subsidies post-2027) could dampen demand. Trade barriers (tariffs) in the US or Europe could restrict access.
• Mitigation: Diversified geographic footprint reduces reliance on any single market. Strong local partnerships help navigate regulatory landscapes.

4. Competition Intensification

• Domestic: The Chinese mounting market is fragmented and highly competitive, leading to margin pressure.
• Global: International players (e.g., Nextracker, Array Technologies) dominate the utility tracker space. Clenergy must continue to innovate to gain share.
• Mitigation: Focus on niche strengths (distributed roofs) and cost-effective tracker solutions for emerging markets.

5. Technology Obsolescence

• Risk: Rapid changes in PV module technology (e.g., bifacial, larger formats) require continuous adaptation of mounting designs. Failure to keep pace could render products obsolete.
• Mitigation: High R&D investment and close collaboration with module manufacturers.

Rating / Sector Outlook

Sector Outlook: Positive
The global renewable energy sector remains in a secular growth trend. While the PV installation growth rate is moderating, the absolute volume is at historic highs. The addition of energy storage as a mandatory or economically viable component of new PV projects expands the total addressable market for companies like Clenergy. Policy support in key markets (China, EU, Australia, US) remains robust, albeit evolving in structure (from capex subsidies to market-based mechanisms).

Company Rating: OUTPERFORM (Initial Coverage)
We assign an OUTPERFORM rating to Clenergy Technologies (603628.SH).
* Justification: The company is well-positioned to benefit from the dual tailwinds of steady PV growth and explosive storage adoption. Its strong balance sheet, global brand equity, and technological capabilities provide a defensive moat, while the storage expansion offers offensive upside. The current valuation offers an attractive entry point for long-term investors.

Investment View

Why Invest in Clenergy Now?

1. Timing the Cycle: The PV industry has bottomed out in terms of sentiment and profitability. 1H2025 results confirm the earnings inflection. Investing now allows capturing the upside of the recovery cycle.
2. Optionality on Storage: The market is underestimating the potential of Clenergy’s storage business. The Australian subsidy is a tangible, near-term catalyst. If Clenergy captures even 10-15% of the subsidized market, the revenue impact will be material and high-margin.
3. Global Diversification: Unlike peers heavily reliant on the domestic Chinese market, Clenergy derives a significant portion of revenue from overseas, where margins are generally higher and competition is less cut-throat. This diversification provides stability against domestic policy shifts.
4. Valuation Safety Margin: Trading at 18x 2026E earnings, the stock is cheap relative to its growth profile (36% net profit growth in 2026). The downside risk is limited by its tangible asset base and consistent cash flow from the core mounting business.

Strategic Recommendations for Investors

• Long-Term Hold: Clenergy is suitable for portfolios seeking exposure to the global energy transition with a focus on established players rather than speculative startups.
• Monitor Key Catalysts:
  • Quarterly updates on storage sales volumes in Australia.
  • Margin trends in the mounting segment (sign of pricing power).
  • New large-scale tracker contract wins in emerging markets.
• Risk Management: Keep an eye on AUD/CNY and EUR/CNY exchange rates, as well as global steel/aluminum price indices.

Conclusion

Clenergy Technologies stands at a pivotal juncture. Having solidified its position as a global leader in PV mounting, it is now leveraging that foundation to build a diversified clean energy empire. The integration of storage, the expansion into utility-scale trackers, and the deepening of its global footprint create a multi-dimensional growth story. With earnings accelerating, margins stabilizing, and valuation remaining reasonable, Clenergy offers a compelling risk-adjusted return profile. We recommend institutional investors accumulate positions to benefit from the anticipated re-rating as the storage narrative unfolds.

Appendix: Detailed Financial Statements

Income Statement Forecast (CNY Million)

Balance Sheet Forecast (CNY Million)

Cash Flow Statement Forecast (CNY Million)

Key Financial Ratios

Analyst Certification and Disclaimer

Analyst Certification:
The analysts named in this report certify that they have accurately represented their personal, objective views regarding the subject securities or issuers. They confirm that no part of their compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed in this report.

Rating Definitions:
* Outperform (Recommended): Expected to outperform the relevant benchmark index by >15% over the next 12 months.
* Cautiously Recommended: Expected to outperform the benchmark by 5%-15%.
* Neutral: Expected to perform within +/- 5% of the benchmark.
* Underperform (Avoid): Expected to underperform the benchmark by >5%.

Disclaimer:
This report is prepared by Minsheng Securities Co., Ltd. for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities. The information contained herein is based on sources believed to be reliable, but Minsheng Securities does not guarantee its accuracy or completeness. Investors should conduct their own independent research and consult with financial advisors before making investment decisions. Minsheng Securities and its affiliates may hold positions in the securities mentioned and may engage in transactions inconsistent with the views expressed herein. Past performance is not indicative of future results.

Contact Information:
Minsheng Securities Research Institute
* Shanghai: 7th Floor, Star Cube Building, 188 Yangshupu Road, Hongkou District, Shanghai 200082
* Beijing: 18th Floor, Tower A, Minsheng Financial Center, 28 Jianguomennei Avenue, Dongcheng District, Beijing 100005
* Shenzhen: Room 01, 10th Floor, Tower 1, Kerry Construction Plaza, 1 Zhongxin 4th Road, Futian District, Shenzhen 518048

End of Report