Comparison of PV core assets between China and the United States. The share price of Enphase Energy Inc, a leading PV inverter in the U.S. stocks, fell from 339.92 in December 2022 to a new low of 76.06 in this round, and after the results were announced on October 20, it fell by more than 20% because the European market shrank and fell short of market expectations.
On the contrary, Sungrow, the leading photovoltaic inverter on the A-share gem, exceeded market expectations in the third quarter, with revenue of 46.415 billion yuan in the first three quarters, a year-on-year increase of 108.85%; The net profit attributable to shareholders of the listed company was 7.223 billion yuan, a year-on-year increase of 250.53%. The company said that it was mainly due to the growth of photovoltaic inverter, energy storage business and new energy investment and development income. The overseas proportion of optical storage business (especially in the European market) is relatively high, with the overseas proportion of inverter business accounting for more than 60%, and the overseas proportion of energy storage business accounting for more than 80%.
Enphase Energy Inc is still trading at 18.79 times the price-to-earnings ratio, while First Solar is trading at a dynamic P/E ratio of 110 times, while Sungrow is trading at 13.19 times. Not only PV assets, but also China's core assets in other markets, the market's valuation and market pricing of China's core assets are much lower than those of U.S. stocks.
Some people may ask, is it because the domestic capital market will not give valuation? No, they know how to calculate valuations better than anyone else, and they just want to lower the price of these high-quality assets now, so that everyone panics and sells, and then buys them while the price is low. That's what they really intended.
