Ningbo Deye Technology (605117.SS): Beneficiary of EU‘s Commitment on C&I Energy Storage Deployment

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Ningbo Deye Technology (605117.SS): Beneficiary of EU‘s Commitment on C&I Energy Storage Deployment

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29 Jun 2026 00:09:30 ET │ 11 pages

Ningbo Deye Technology (605117.SS)

Beneficiary of EU’s Commitment on C&I Energy Storage Deployment

CITI’S TAKE

On 26 June 2026, the European Commission entered into the first-ever EU

Buy tripartite agreement on energy storage, aiming to boost annual energy

Price (26 Jun 26 15:00) Rmb96.490 storage installations by at least 20% from 12GW in 2025, corresponding to

approximately 45GW to be installed in 2026-28. In particular, the Target price Rmb142.857

agreement aims to boost battery installations in the C&I sector from Expected share price return 48.1%

9GWh in 2026 to 24GWh in 2028, indicating an annual installation of Expected dividend yield 2.3%

5GWh in 2027-28, doubling from that in 2025 of 2.3GWh. We reiterate Expected total return 50.3%

Buy rating on Deye, expecting it to benefit from C&I battery storage (BESS) Market Cap Rmb122,842M

demand growth in Europe, as the company has an increasing sales mix of

US$18,147M ESS inverters to C&I sectors (up from 19.4% in 2024 to 28.0% in 1Q26), of

which approximately 50% are to European markets by our estimate. Its

22.7x 2026E PE looks undemanding to us versus strong 69.8% 2026E EPS

growth. Asian Utilities

China Solar Sector

What’s new – On 26 June 2026, the European Commission entered into the first- Air MaAC

ever EU tripartite agreement on energy storage together with a number of EU energy +852-2501-7450

ministers, storage developers and manufacturers, renewable energy developers,

air.ma@citi.com

energy-consuming industries and financial institutions. The aims of this agreement,

with immediate effect in 2026-2028, are to: (i) boost the annual deployment of Pierre Lau, CFA