Sun power joins with Samsung SDI energy storage business set up two joint venture companies went ahead

Polaris solar PV net news: Sun power November 5 noon announcement, on November 4, 2014 in the Korea Pusan of the joint-venture contract was signed with Samsung SDI co, set up two joint venture companies: Samsung sunshine (Hefei) storage battery company limited (hereinafter referred to as “Samsung sunshine”), Samsung and Sun (Hefei) accumulator power limited (hereinafter referred to as “Sun Star”).

Samsung Sun’s main power facility with lithium-ion storage battery pack business: Samsung sunshine in China engaged in lithium-ion storage battery pack for electric facilities of the development, production, marketing and distribution; outside China only via SDI and its affiliates, according to SDI and exclusive distribution agreement between the joint venture sell lithium-ion storage battery pack for electric power facilities. Samsung Sun a total investment of 260 million Yuan, registered capital of 130 million Yuan, including SDI contribution of 84.5 million dollars, holding 65% company contribution of 45.5 million dollars, shares 35%.

Samsung’s main power facility with the sun streaming system and integration of system business: Sun Samsung in China engaged in electric power facilities in variable flow systems and integrated system of development, production, sale and distribution; outside China by Sun and its affiliates only, under the Sun and exclusive distribution agreement between the joint venture sold electric utilities with variable flow systems. Sunshine Samsung a total investment of 120 million Yuan, registered capital of 60 million Yuan, which the company invested 39 million Yuan, holding 65%;SDI invested 21 million Yuan, shares 35%.

Partner SDI’s powerful, lithium battery, established global leader: Samsung SDI since its establishment since the 70 ‘s of the last century, pioneered Korea display industry chapter. In 2000, Samsung SDI to enter the field of lithium batteries, and quickly became the first in the world in a short time, the current global market share of about 27%. Currently, Samsung SDI’s product line covers a small lithium-ion batteries, batteries, storage batteries, electronic raw materials, the company has transformed itself from a display at the core of business success for clean energy solutions as core business.

Energy costs fell to look forward to, the future market is vast: according to incomplete data storage industry technology alliances in Zhongguancun in 2013, the world’s new energy storage project 78MW, a total installed capacity of 736MW, mainly in Germany, and Japan and other regions 2013 domestic new energy storage project 14.5MW, a total installed capacity of 51.5MW, faster than the global average. Whether global or China, both demonstration projects or commercial projects, grid-connected renewable energy is the most important application. At present, energy storage is in the early stages of industrialization, it costs down in the future to look forward to. We expect that within the next 3 years, the system is expected to cost from 5/Wh per cent to 2.5/Wh, where battery costs are expected to fall from current 3 Yuan/Wh 2/Wh, other components are expected to fall from current 3 Yuan/Wh 2/Wh. Industry experts predict that by 2020, added 3GW per year energy demand in the world, the domestic energy industry market size, at least up to 600 billion yuan.

Both complement each other, with the perfect combination of old ones: SDI in the lithium-ion storage battery pack business, has absolute advantages, so holding Samsung sunshine. Company is the absolute leader of the inverter, inverter technology with obvious advantages, also involved in PV power plant EPC area for grid-connected renewable energy access, System optimizer has a profound understanding, thus holding the Sun Star. Both complement each other, with the perfect combination of old industries, is expected to accelerate the process of industrialization of energy storage, and storage areas in the future tide in the nuggets to seize the initiative.

Investment advice: we expect EPS 0.58 per cent, respectively, of the company 2014-2016 0.87 Yuan and 1.23 dollars, corresponding to PE of 32.3 times, respectively, 21.6 times and 15.3 times times, maintaining “buy” investment rating and target price of 26, which corresponds to 2015 30 times PE.

Risk warning: policy does not reach the desired product price competition than expected; distributed project does not reach expectations; business promoting energy storage are not up to expectations.

Original title: Sunshine power joins with Samsung SDI was founded two joint venture energy storage business smoothly

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