Host: Hello, recently Deye Co., Ltd. announced that it plans to set up a wholly-owned subsidiary and build a production base in Malaysia, with an investment of US$150 million. What is the core motivation for this investment decision?
Expert: Hello! Deye Co., Ltd.’s choice of Malaysia to invest and build a factory is a well-considered strategic move. The core motivations are mainly the following three points:
Location advantage: Malaysia is located in the center of Southeast Asia and has strong radiation capabilities. It can not only efficiently serve Southeast Asia, but also extend to the African and European markets. Especially as the global supply chain gradually shifts towards multipolarization, the company hopes to quickly respond to the needs of Southeast Asia and emerging markets through this base, while avoiding some trade barriers in the European and American markets.
Reduce operational risks: The current global macro-environment is increasingly uncertain. Setting up factories overseas can optimize production capacity layout, disperse trade and geopolitical risks, and enhance the flexibility of the international supply chain.
Host: This production base is mainly used to produce inverters and battery packs. What do you think of the potential of these products in the target market?
Expert: Inverters and battery packs are key components in the photovoltaic and energy storage fields, and the current global demand for such products is showing a strong growth trend:
Inverter: Deye Co., Ltd.’s inverter products have long been emerging in the European and American home energy storage markets, while the Southeast Asian, Middle Eastern and African markets are in their infancy, with huge potential for demand release. The power infrastructure in these regions is relatively weak, and the demand for distributed energy storage and photovoltaic power generation is very high.
Battery Pack: Deye’s battery pack business has been greatly expanded in the European market this year, and customers can choose by themselves
In addition, from a global trend, the core competitive points of photovoltaic and energy storage equipment are production efficiency and cost control. The construction of the Malaysian base will significantly reduce logistics and operating costs and improve the company’s competitiveness in emerging markets.
Host: What progress has Deye Co., Ltd. made in its layout in the Asian, African and Latin American markets in recent years? What specific successful experiences are worth learning from? Expert: Deye Co., Ltd.’s layout in the Asian, African and Latin American markets can be described as far-sighted, and has made significant progress in the past year:
Channel Coverage: Deye’s shipments in Pakistan, Ukraine and Southeast Asian markets have increased significantly. Especially in Southeast Asia, the company has established a solid cooperative relationship with local dealers, and has formulated differentiated product promotion strategies for different markets.
Strong product adaptability: The high cost-effectiveness of the company’s products is very consistent with the needs of the Asian, African and Latin American markets. For example, photovoltaic inverters are highly applicable in the South Asian and Southeast Asian markets, and can meet the needs of use in complex climatic conditions and unstable power grid environments. Great market potential: At present, the Asian, African and Latin American markets are still a blue ocean. Take India as an example, its government is vigorously promoting clean energy transformation; and the Middle East, especially Saudi Arabia and the United Arab Emirates, are also promoting photovoltaic and energy storage projects. The continued increase in demand in these regions will provide Deye Shares with broad growth space.
Host: Judging from the information currently announced, how did the company’s energy storage inverters and battery packs perform in the third quarter of this year? Can they become an important growth point for the company in the future?
Expert: Judging from the financial data released by the company, the energy storage inverter and battery pack business has performed well this year, especially in the third quarter:
Energy storage inverter: The single-quarter shipment volume has reached 17,000-18,000 units, accounting for 15%-20% of energy storage revenue. This data shows that the company’s products have begun to occupy a place in the global market.
Battery pack: Since the beginning of this year, the company’s battery pack sales in the European market have increased significantly, thanks to the increase in self-matching rate and the rapid response to the demand for household energy storage in Europe. It is expected that in 2025, the company’s battery pack and industrial and commercial energy storage business will account for a large proportion of the overall revenue and become an important driving force for future performance. With the commissioning of the Malaysian base, these two major product lines will further achieve global expansion and are expected to seize more market share in Southeast Asia and Africa.
Host: At present, the competition in the industry is becoming increasingly fierce. What challenges does Deye Co., Ltd. face? How should the company respond?
Expert: The competition in the industry is indeed becoming more and more fierce, but Deye Co., Ltd. has certain advantages in market competition. Of course, there are also some challenges:
Competitive pressure: In the international market, leading companies such as Huawei and Sungrow are also actively expanding overseas markets. Deye Co., Ltd. needs to continuously enhance its technological advantages and increase investment in localized services and channel construction.
Cost control: The Southeast Asian market is very sensitive to prices. Deye Co., Ltd. needs to reduce costs through large-scale production and refined management to maintain price competitiveness.
Policy risks: The policy environment in emerging markets is relatively complex and needs to adapt to the local market
To cope with these challenges, the company needs to strengthen its technological innovation capabilities, such as further optimizing energy storage inverters and battery pack products, improving energy efficiency and intelligence levels. At the same time, strengthening the supply chain management and localized service capabilities of the regional market through the Malaysian base will gain greater advantages in the competition.
Host: Thank you very much for your professional interpretation. Finally, what is your outlook on the future development of Deye Shares in the international market?
Expert: Deye Shares is accelerating in the global new energy track, especially in the layout of emerging markets. The establishment of the Malaysian base marks a more solid step for the company in the internationalization process. I believe that with the rapid penetration of new products and the continued growth of regional market demand, Deye Shares will perform more brilliantly in the global market in the future. Especially in the field of photovoltaic inverters and energy storage battery packs, the company is expected to become one of the world’s leading suppliers.
Host: Thank you for your detailed analysis. I believe that this investment in Malaysia will become an important milestone in Deye Shares’ globalization strategy!
Post time: Dec-31-2024