Market value exceeds 22 billion yuan! "The first portable energy storage stock" is listed on the GEM

As the demand for off-grid electricity in outdoor activities and home emergencies gradually becomes rigid, the penetration rate of portable energy storage products in related application scenarios continues to increase, and the overall market size is also growing rapidly. Several companies focusing on energy storage products, such as Huabao New Energy and Payne Technology, have taken advantage of this opportunity.

The market value exceeds 22 billion yuan, Huabao New Energy is listed on the ChiNext

Recently, Shenzhen Huabao New Energy Co., Ltd. (hereinafter referred to as "Huabao New Energy") successfully landed on the Shenzhen Stock Exchange's Growth Enterprise Market. The total number of RMB common shares of Huabao New Energy this time is 96 million shares , of which 23.2744 million shares have been listed and traded since the date of listing . Based on its issue price, the current market value of Huabao New Energy exceeds 22 billion yuan.

Huabao New Energy was founded in 2011. At first, it mainly produced power bank products. Later, under the homogeneous competition, the company's founder turned his attention to portable energy storage products. The company now has two independent brands, "Jackery" and "Dianxiaoer". The products are mainly sold in China, Europe, the United States, Japan, etc., and the main business online sales revenue accounts for more than 80%. In terms of online sales channels, its portable energy storage products have been continuously selected in the Amazon platform's best-selling list for many years, and are also at the forefront of the sales list of multiple e-commerce platforms such as JD.com and Rakuten.

In 2021, Huabao New Energy's portable energy storage product sales amounted to 1.835 billion yuan, accounting for nearly 80% of its main business revenue, with an average annual compound growth rate of over 171%. Other products such as solar panels and accessories also had good sales, reaching 139 million yuan and 24.47 million yuan respectively. Compared with the previous two years, it can be found that the company has changed the sales proportion of its main products: the proportion of solar panels has increased, and the proportion of power banks has decreased.

The dual increase in brand influence and market penetration in overseas markets has led to an increase in the company's sales scale. In the first half of this year, the company's total revenue reached 1.315 billion yuan, a year-on-year increase of 35.77%; the total profit was 160 million yuan, a year-on-year increase of 2.2%. However, like many companies in the same industry, while Huabao New Energy has benefited from market dividends, it has been adversely affected by objective factors such as intensified market competition and rising raw material prices. The most obvious manifestation is that its net profit growth rate is lower than the operating income growth rate.

However, in the latest offering statement, Huabao New Energy made a forecast for the overall performance in the first three quarters, and the overall performance was positive. From January to September 2022 , the company's operating income will be between 2.11 billion yuan and 2.804 billion yuan , a year-on-year increase of 36.59% to 81.55%; the net profit is expected to be between 213 million yuan and 292 million yuan , a year-on-year increase of 0.11% to 36.94% . Both operating income and net profit have increased year-on-year .

In recent years, due to the rapid growth of the portable energy storage industry market , the company's product penetration rate has been continuously improved. Huabao New Energy is naturally more confident about the growth expectations of its third-quarter performance.

Many big sellers are involved in the field of energy storage products

In the field of energy storage products, Huabao New Energy is not the only one. There are also many senior big sellers in the industry, such as Payne Technology, Zhenghao Innovation, and GOAL ZERO, all of which have many years of industry experience.

Among the above companies, Payne Technology is mainly engaged in the research and development, production and sales of lithium iron phosphate cells, modules and energy storage battery systems. Its own brand household energy storage product shipments account for 8.5% of the global total shipments, ranking third in the world.

GOAL ZERO has strong innovation capabilities in portable solar systems and is a world-renowned portable solar equipment manufacturer. Another company, Zhenghao Innovation, is a national high-tech enterprise that focuses on the research and development and sales of energy storage products, and often ranks first in sales on domestic e-commerce platforms. Several companies have deep attainments in the field of energy storage products, but each has its own strengths in different sub-sectors.

In this regard, Huabao New Energy stated that it still has certain advantages in marketing, R&D technology, strategic layout and other aspects.

In order to increase exposure, social media has become a major marketing focus of the company. Huabao New Energy has promoted the "Jackery" brand on multiple social platforms such as Youtube, Facebook and Instagram. The videos have received a large number of views and have gained a large number of "fans" at home and abroad.

In terms of R&D, Huabao New Energy has a solid foundation. The company's R&D expenses have grown at an average annual compound growth rate of 167% in the past three years , and last year's R&D expenses were RMB 64.51 million. There are about 200 R&D technicians, and its core technicians have an average of more than 20 years of experience in the lithium battery field.

In terms of strategic layout, Huabao New Energy's integrated online and offline model has broadened its product sales channels and achieved good traffic performance. However, the company admitted that it still has shortcomings in product penetration and financing, which need to be strengthened in the future.

Although there is a competitive relationship between the brands mentioned above, they have a positive impact on the overseas expansion of domestic energy storage brands. While increasing the overseas market share of domestic energy storage brands, it also enhances the brand awareness of each brand.

Outdoor energy storage products have great potential

The increase in electricity demand among overseas consumers in outdoor activities and home emergency scenarios has led to a significant increase in sales of portable energy storage products, and the usage and penetration rates of related products in the European and American markets have also increased accordingly.

Portable energy storage products can be used by buyers in outdoor application scenarios such as camping, traveling, and outdoor sports. When camping outdoors, they can provide backup power for electrical products such as lighting and cooking to meet unexpected needs. However, as the number of electronic devices and electrical products required for outdoor activities increases, all related equipment products need to be powered by off-grid electricity to maintain their normal operation, which has led to the demand for off-grid electricity in outdoor activities becoming a rigid demand.

At the same time, as people's awareness of disaster prevention and preparedness has continued to increase in recent years, emergency backup power has gradually become an important emergency backup product in family life. Portable energy storage products have been favored and sought after by outdoor people as soon as they were launched due to their advantages such as large capacity, high power, safety and portability. This can be seen from the data of Huabao New Energy in the past three years. Since 2019, the company's portable energy storage products have sold 69,200 units, 130,000 units and 332,900 units in the United States, respectively, with sales doubling, which shows the great consumer demand of buyers.

According to data from relevant institutions, the global lithium battery market will grow to approximately US$94.4 billion by 2025, with a compound growth rate of more than 16%. The global portable generator market will reach RMB 30.4 billion in 2026, with an average annual compound growth rate of approximately 7.2%.

The market size of portable energy storage products is large, but the penetration rate remains low. Relevant data shows that the proportion of outdoor and home scene applications does not exceed 5%. For relevant sellers, there is a lot of room to increase product penetration in the future.