[IPO Sentinel] From a Small Home Appliance Factory to a Hundred-Billion Market Cap: Global Residential Energy Storage Inverter Giant Makes Another Push into the Hong Kong Stock Market

Amid the new energy wave, the inverter sector is experiencing a highlight moment. The Hong Kong stock market has already gathered players involved in inverters such as $SIGENERGY(06656.HK) and $TIMES ELECTRIC(03898.HK).

Global residential energy storage inverter giant Deye Shares (605117.SH) submitted its H-share listing application to the Hong Kong Stock Exchange again on July 28, aiming for dual listing in "A+H" markets. This is the company's second attempt to knock on the door of the Hong Kong stock market. It first filed at the end of January 2026, but the application expired due to outdated materials. Now making a comeback, market attention remains undiminished.

As a scarce target in the photovoltaic and energy storage sector combining high growth and strong profitability, Deye Shares has long been labeled with "high profitability, strong cash flow, and high overseas proportion." Its current A-share market capitalization has exceeded 100 billion yuan. This second filing undoubtedly prompts the market to re-examine the depth of its growth logic and the quality of its long-term value.

From a small home appliance parts factory to the global leader in residential energy storage inverters

Deye Shares' growth path presents a complete trajectory of traditional manufacturing enterprises cross-border transforming into the new energy field.

The company's founder, Zhang Hejun, started his entrepreneurial journey as an individual business owner, entering through injection molding and sheet metal processing businesses, and gradually expanding into home appliance compressor parts and environmental appliance complete machines. In its early days, Deye was just an ordinary member among many home appliance supporting manufacturers in the Yangtze River Delta.

2016 became a key turning point for the company's development. Relying on power electronics technology, thermal management processes, and precision manufacturing capabilities accumulated in the home appliance field, Deye Shares officially entered the photovoltaic inverter sector while anchoring overseas markets to launch a globalization layout. With differentiated product strategies and channel expansion, the company completed the shift of its business focus from a home appliance parts factory to a new energy enterprise within a few years.

Currently, Deye Shares' product matrix covers three major sectors: inverters, energy storage systems, and environmental appliances, with the business focus clearly tilting towards the new energy field.

According to Frost & Sullivan data, calculated by sales amount in 2025, Deye Shares is the world's largest residential energy storage inverter provider, with a market share of 20.6%, significantly leading the second place's 13.4% market share; it also ranks second globally in the commercial and industrial energy storage inverter market with a 20.4% market share. Meanwhile, the company firmly stays in the top ten for residential energy storage inverter revenue in the mature European market; in emerging markets with high growth such as Africa and the Middle East, Deye Shares has also completed its layout and occupied a foothold.

Globalization layout is an important operational characteristic of Deye Shares. Currently, the company's products cover more than 150 countries and regions across six continents, with the proportion of overseas income continuing to rise. In the first four months of 2026, the company's overseas market revenue accounted for 87.6%. Against the backdrop of 承压 demand in China's photovoltaic and energy storage market, overseas income has formed an important support for total revenue.

The booming development of Deye Shares has also pushed founder Zhang Hejun's wealth onto the global rich list. According to the "Hurun Global Rich List" released on March 5, 2026, Zhang Hejun ranked 687th with a net worth of 45.5 billion yuan.

"New Energy + Home Appliances" dual-wheel drive, profitability leads the industry

After years of development, Deye Shares has formed a business structure of "new energy as the mainstay, home appliances as supplementary," but the two sectors show significant differentiation characteristics of "one rising and one falling."

Among them, the new energy business is the company's growth engine. Both energy storage inverters and energy storage battery packs maintain high-speed growth, continuously driving the expansion of the company's revenue scale. Specifically, in the first four months of 2026, new energy business revenue surged 115.4% year-on-year to 5.802 billion yuan (unit: RMB, same below), accounting for 93.9% of total revenue.

In contrast, the environmental management equipment, which serves as the cornerstone of the company's traditional business, has continued to perform poorly in terms of revenue under the influence of industry cycle downturns and weak domestic demand. Revenue directly halved in the first four months of 2026, and its contribution to overall performance has gradually narrowed.

From a profitability perspective, Deye Shares possesses strong profitability in the new energy sector. Over the past three years, the company's net profit has continued to grow, reaching 1.61 billion yuan in the first four months of 2026, a year-on-year increase of 74.31%. The energy storage inverter business is the absolute "profit ballast." Benefiting from the increased proportion in high-end overseas markets and technical premiums, the gross margin of this business has long remained above 50%, reaching 51.1% in 2025, contributing the vast majority of the company's profits.

At the overall profitability level, the company's net profit margin has stabilized in the 23%-26% range over the past few years, significantly higher than the average level of the photovoltaic and energy storage industry. Against the background of generally pressured profitability in the manufacturing industry and frequent price wars, this net profit margin level is directly related to the company's strategy of focusing on the overseas residential energy storage market and avoiding low-price competition areas in China.

Regarding the use of funds raised for this Hong Kong listing, Deye Shares' plan highly matches its own business strategy. The raised funds will be mainly invested in research and development upgrades in fields such as overseas residential energy storage systems and energy storage systems, and will also be used to build new production bases domestically and internationally, further improving the global capacity layout, enhancing overseas localized delivery and service capabilities, and consolidating the leading competitive advantage in the global market.

Three major concerns coexist; risk variables need attention under high growth

Beyond the eye-catching growth and profitability data, Deye Shares also faces potential risks associated with the export model and industry cycles, which are core variables that cannot be ignored in investor decision-making.

First is the exchange rate fluctuation risk. With nearly 90% of overseas revenue proportion, the company's performance is highly exposed to exchange rate fluctuations. Since overseas business is mainly settled in US dollars and euros, significant fluctuations in the RMB exchange rate will directly affect the company's exchange gains and losses. Prospectus data shows that the company recorded a net exchange loss of 172 million yuan from January to April 2026, becoming an important disturbing factor for short-term profits. If the RMB exchange rate appreciates significantly in the future, it will continue to suppress the company's profitability.

Second is the tariff and geopolitical policy risk. The current global trade environment is complex and changeable. Tariff policies and anti-dumping investigations by Europe and the United States against Chinese photovoltaic and energy storage products still have uncertainties. Once trade barriers escalate, it will directly push up the compliance costs of the company's overseas market and weaken product price competitiveness. According to the latest news, the US Federal Communications Commission (FCC) announced that brand-new high-end robot equipment and power inverters from abroad 原则上 cannot obtain FCC equipment authorization and shall not be imported, promoted, or sold within the United States.

In 2025, the company's revenue proportion from North America was 4.7%. If the US prohibits the import of Chinese-made inverters, the impact on Deye Shares will be relatively limited.

Third is the risk of intensified industry competition. The high profitability attribute of the residential energy storage sector is attracting more and more industry players to accelerate entry, and market competition is becoming increasingly fierce. If subsequent industry capacity continues to release and triggers a comprehensive escalation of price wars, Deye Shares' current high gross margin level may face downward pressure, and the profit center exists the risk of shifting downwards. How to hold the bottom line of profitability while expanding market share will be an operational test that the company will face for a long time in the future.

Overall, starting from home appliance parts business, Deye Shares has completed the shift of its business focus to the field of residential energy storage inverters. The high proportion of overseas revenue and the gross margin level of the energy storage inverter business constitute the main supporting factors for its current valuation. Exchange rate fluctuations, trade policies, and industry competition are also risk variables that need continuous tracking. If this A+H listing is successfully completed, it will provide financial support for the company's overseas capacity and R&D layout. Whether this company's valuation can be continuously verified in both markets remains to be seen.

Author: Yao Yuan