Analysis Report on the 50GWh Energy Storage Cooperation and Transformation of Siyuan Electric and CATL

Based on the collected information, I will conduct a systematic and comprehensive analysis for you.

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In December 2025, CATL and Siyuan Electric officially signed a three-year energy storage cooperation memorandum, with a

[1][2]. The two parties will achieve two-way collaboration upstream and downstream of the industrial chain in the fields of energy storage systems, power transmission and distribution supporting equipment, etc., to jointly enhance overall solution capabilities and project delivery efficiency. Robin Zeng, Chairman and CEO of CATL, and Dong Zengping, Chairman of Siyuan Electric, jointly witnessed this strategic signing ceremony[1].

JPMorgan released a research report stating that if the relevant production capacity can be fully implemented, this cooperation will bring Siyuan Electric approximately

, assigning a target price of RMB 180 and an “Overweight” rating to Siyuan Electric[3]. Meanwhile, CATL’s H-share target price is HK$650 and A-share target price is RMB 520, both with an “Overweight” rating.

This cooperation is a

since the two parties established cooperation in 2022, marking a strategic upgrade from a single supplier relationship to two-way collaboration:

• Two-way Collaboration Model
  : Based on their respective traditional advantageous fields, promote the market-oriented “dual procurement” model for energy storage
• Technical Collaboration
  : Strengthen technical exchanges and project cooperation, and continuously optimize overall solution capabilities
• Market Collaboration
  : Accelerate the large-scale application of energy storage systems in new-type power grids
• Strategic Positioning
  : Explore a more robust, efficient, and sustainable new model of ecological cooperation for the industry

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Indicator	Value	Industry Comparison
Market Capitalization	US$116.7 billion	Leader in Power Equipment Industry
Current Stock Price	RMB 149.90	-
P/E (TTM)	42.59x	Moderately High
P/B	8.10x	-
ROE	20.71%	Excellent
Net Profit Margin	14.56%	Good
Gross Profit Margin	16.71%	-

Siyuan Electric is a

, whose products fully cover primary and secondary equipment[4]:

Business Segment	Main Products	Revenue Share
Switch Category	GIS, Disconnectors	~30%
Coil Category	Current Transformers, Reactors	~22%
Reactive Power Compensation Category	SVG, APF	~15%
Smart Equipment Category	Protection Devices, Monitoring Systems	~12%
EPC Business	Substation Turnkey Projects	~8%
Energy Storage Business	System Integration, Power Conversion Systems (PCS)	~8%
Supercapacitors	Xijing Carbon Energy	~5%

Siyuan Electric’s energy storage layout has undergone a

:

• 2008
  : Established Siyuan Qingneng Electric & Electronics Co., Ltd., entering the reactive power compensation field
• 2011
  : Entered the large-capacity energy storage and distributed power supply field
• 2023
  : Acquired Xijing Carbon Energy, increasing investment in the supercapacitor field
• 2025
  : Signed a 50GWh energy storage cooperation memorandum with CATL

The company has

in high-voltage power electronics technology, with an early layout of high-voltage cascade technology, and possesses differentiated competitive advantages[4].

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According to industry research reports, energy storage system integrators face

[5][6]:

Energy storage is a

involving interdisciplinary integration of materials science, electrochemistry, power system control, etc., with complex manufacturing processes and strict quality control[5]:

Technical Field	Core Requirements	Technical Challenges
Battery Management Technology	Accurate SOC Estimation by BMS	Battery Consistency Management
Thermal Management Technology	Temperature Control Accuracy of ±2℃	Thermal Runaway Prevention and Control
Energy Management Technology	Millisecond-Level Response	Grid Support Capability
System Integration Technology	99.5% System Efficiency	Multi-Scenario Adaptation

The characteristic parameters of battery cells under different external environments and operating states

, requiring professional testing methods to accumulate a large amount of data and establish data models for different application scenarios[5]. New entrants need not only large capital investment to break through core technologies, but also long-term accumulation of R&D experience, large-scale manufacturing experience, and project experience.

Energy storage system integration is a

, and capital barriers are mainly reflected in:

Capital Demand Segment	Specific Performance
Procurement Side	Large capital occupation in the procurement of core components such as battery cells and PCS
Construction Side	Long power station construction cycle, 6-12 month payment collection cycle
R&D Side	Continuous R&D investment required for technological iteration
Operation Side	Capital occupation by project operation and maintenance and quality deposits

Downstream customers are mainly

with strong bargaining power, resulting in long capital occupation periods for energy storage system integrators. Enterprises with a certain scale of capital reserves have stronger sustainable operating capabilities[5].

Barrier Elements	Specific Content
Customer Resources	Need to establish long-term cooperative relationships with State Grid, China Southern Power Grid, and the five major power generation groups
Project Experience	Performance in large-scale energy storage projects is a threshold for bidding access
Qualification Certification	Need to possess relevant qualifications for power engineering
Brand Recognition	Downstream customers’ attention to integrator brands is gradually increasing

Original PCS manufacturers and original grid-system energy storage system integration enterprises have

and abundant channel resources. As a traditional power equipment enterprise, Siyuan Electric has inherent advantages in grid-side customer resources[4].

Frequent safety accidents in energy storage power stations have aroused great attention from the industry:

Safety Segment	Specific Requirements
Certification Standards	Product safety certification standards are urgently needed to be implemented
Temperature Control System	Thermal management system is the core of safety guarantee
Monitoring System	Real-time monitoring and early warning system
After-sales Service	Full-life cycle operation and maintenance capability

The midstream energy storage system integration segment is the

for safety issues. As the energy storage integrated system is a coupling of upstream components, it is the only segment that can be responsible for the safety of the entire energy storage system product[5].

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As a transmission and distribution equipment provider transforming into an energy storage system integrator, Siyuan Electric has

[4]:

Advantage Area	Specific Manifestations
Customer Base	Downstream customers include State Grid, China Southern Power Grid, and power generation groups, with directly reusable customer resources
Technical Gene	Deep accumulation in power electronics technology, leading in high-voltage cascade technology
Equipment Manufacturing	Strong independent R&D and production capabilities for core equipment
System Understanding	In-depth understanding of the operation logic of power systems

Capability Dimension	Current Level	Required for Transformation	Gap
Technical Accumulation	85	90	5
Customer Resources	90	85	-5 (Advantage)
Capital Strength	70	80	10
Brand Recognition	75	70	-5 (Advantage)
Project Experience	60	85	25

• Mergers and Acquisitions Integration
  : Acquired Xijing Carbon Energy in 2023 to increase investment in the supercapacitor field[4]
• Independent R&D
  : Continuously increase R&D investment, with R&D expenses remaining at a high level in the first half of 2025[7]
• Collaborative Cooperation
  : Established in-depth technical cooperation with CATL to obtain battery cell data and technical support

• Scale Effect
  : The 50GWh cooperation framework brings scale procurement advantages and reduces battery cell costs
• Cash Flow Management
  : Traditional transmission and distribution businesses provide stable cash flow support
• Capital Market
  : A-share listing platform has refinancing capabilities

• Customer Reuse
  : Existing grid customer resources can be directly converted into energy storage customers
• Cross-Selling
  : Bundled sales of power equipment + energy storage solutions
• Overseas Expansion
  : Layout in the North American market and establishment of a U.S. subsidiary[7]

• Data Accumulation
  : Accumulate a large amount of operating data relying on grid projects
• Technical Verification
  : Verify system reliability through State Grid and China Southern Power Grid projects
• Quality Assurance System
  : Establish a complete full-life cycle service capability

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Year	Global New Installed Capacity (GWh)	China New Installed Capacity (GWh)
2023	122	27
2024E	-	38.6/93.6GW
2025E	327	110

Based on JPMorgan’s forecast and industry data, the revenue of Siyuan Electric’s energy storage business is estimated as follows:

Year	Energy Storage Business Revenue (RMB 100 million)	YoY Growth	Remarks
2025E	50-60	Key Breakthrough Year	Cooperation Framework Implemented
2026E	80-100	60-70%	Production Capacity Released
2027E	120-150	40-50%	Large-Scale Operation

1. Technical Endorsement
   : Gained technical recognition from the world’s largest battery supplier
2. Cost Advantage
   : Locked in 50GWh battery cell supply and obtained preferential prices
3. Market Expansion
   : Expanded overseas markets with the help of CATL’s channels
4. Brand Enhancement
   : Strengthened the position as an energy storage system integrator

1. Channel Expansion
   : Entered the grid-side energy storage market with the help of Siyuan Electric
2. System Integration Capability
   : Strengthened the system integration segment
3. Customer Collaboration
   : Shared grid customer resources

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Company	Rating	Target Price	Upside Potential
Siyuan Electric (A-Share)	Overweight	RMB 180	Approximately 20%
CATL (A-Share)	Overweight	RMB 520	-
CATL (H-Share)	Overweight	HK$650	-

Risk Type	Specific Content
Market Competition Risk	Fierce competition among energy storage integrators, continuous price wars
Technological Iteration Risk	Risk of changes in energy storage technology routes
Policy Risk	Changes in new energy energy storage supporting policies
Cooperation Execution Risk	Implementation progress of the 50GWh cooperation framework
Exchange Rate Risk	Exchange rate fluctuations in overseas businesses

Siyuan Electric’s

lies in:

1. Platform Capability
   : Products cover all links of power generation, transmission, distribution, utilization, and storage
2. Technical Accumulation
   : 30 years of technical precipitation in power equipment
3. Customer Resources
   : Established long-term cooperative relationships with power grids and power generation groups
4. Strategic Collaboration
   : Formed two-way industrial chain collaboration with CATL

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The signing of the 50GWh energy storage cooperation memorandum between Siyuan Electric and CATL marks a

for the company’s transformation from a traditional transmission and distribution equipment provider to an energy storage system integrator.

Transmission and distribution equipment providers transforming into system integrators face four major barriers: technology, capital, channels, and safety. However, Siyuan Electric relies on:

• Deep technical accumulation
  and advantages in high-voltage power electronics technology
• High-quality customer resources
  and long-term cooperative relationships with power grid enterprises
• Platform-based product layout
  covering all links of the power system
• Strategic partner
  CATL’s battery cell supply and technical support

In the context of the rapid development of the energy storage industry, Siyuan Electric has the

to break through transformation barriers and achieve rapid growth in its energy storage business. The target price of RMB 180 and “Overweight” rating given by JPMorgan also reflect the market’s optimistic expectations for the company’s transformation prospects.

As the proportion of the energy storage business gradually increases, Siyuan Electric is expected to upgrade from a

to an , opening up new growth space.

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[1] CATL Official Website - “3-Year 50GWh, CATL and Siyuan Electric Sign Energy Storage Cooperation Memorandum” (https://www.catl.com/news/9504.html)

[2] Eastmoney - “CATL and Siyuan Electric Sign Energy Storage Cooperation Memorandum” (https://finance.eastmoney.com/a/202512253601687270.html)

[3] Sina Finance - “JPMorgan: Siyuan Electric’s Energy Storage System Cooperation with CATL Helps Expand Business, Both Given ‘Overweight’ Ratings” (https://finance.sina.com.cn/stock/bxjj/2026-01-06/doc-inhfiqwt1507825.shtml)

[4] Eastmoney Securities Research Report - “Platform-Based Leading Power Equipment Enterprise, Energy Storage + Off-Grid Businesses Accelerate Growth” (https://pdf.dfcfw.com/pdf/H3_AP202310231602728765_1.pdf)

[5] Huaan Securities Research Report - “Energy Storage System Integration Industry — Four High Barriers, the Competition for Position is in Full Swing” (https://pdf.dfcfw.com/pdf/H3_AP202307171592331712_1.pdf)

[6] Jiangsu Luokai Electromechanical Prospectus - “Analysis of Barriers in the Energy Storage System Integration Industry” (http://file.finance.sina.com.cn/211.154.219.97:9494/MRGG/CNSESH_STOCK/2023/2023-10/2023-10-12/9563279.PDF)

[7] Siyuan Electric Investor Relations Activity Record (http://static.cninfo.com.cn/finalpage/2025-08-22/1224558771.PDF)

[0] Jinling AI Financial Database - “Siyuan Electric (002028.SZ) Company Overview, Financial Analysis and Technical Indicators”