Overseas PV Mounting Bracket Business Continues to Grow, Profit of CITIC Bo in 2024 Expected to Increase by Over 80%.

On January 21, Arctech released its 2024 annual performance forecast.

According to the announcement, the company expects to achieve a net profit attributable to shareholders of approximately 635 million yuan in 2024, up 84.04% YoY; the net profit excluding non-recurring items is expected to be 610 million yuan, up 99.13% YoY.

On a quarterly basis, Arctech's net profit in Q4 2024 is expected to be 208 million yuan, up 10.69% YoY and 6.02% MoM.

Arctech stated that during the reporting period, robust demand for PV ground-mounted power station installations overseas, along with the rise of emerging markets such as the Middle East and Latin America, drove the continuous growth of its overseas solar panel mounting bracket business. The company's horizontal and vertical integrated layout of PV mounting bracket systems in overseas markets gradually showed results during this period, leading to growth in both revenue and net profit.

Arctech focuses on centralized ground-mounted power stations and commercial and industrial distributed BIPV sectors, with its main products including PV tracking bracket systems, fixed bracket systems, BIPV PV rooftops, and BIPV carports.

As of December 31, 2024, the company had orders on hand totaling approximately 4.65 billion yuan, including about 3.5 billion yuan for tracking systems and about 1.15 billion yuan for other products.

Regarding its advantages in overseas deployment, Arctech mentioned during an institutional survey that these mainly include its early establishment of a global marketing network and the early development of a global supply chain.

"Relying on its early go-global strategy in markets such as India, the Middle East, Central Asia, and Latin America, the company has continuously expanded its market share overseas. Arctech has built localized capacity in India and Saudi Arabia, combined with its domestic production sites, to establish an increasingly comprehensive global supply chain system. This effectively meets the stringent delivery requirements of the growing market size for PV mounting brackets in major global PV markets," the company stated.

In terms of specific capacity layout, in 2024, the company signed a land lease agreement with the Saudi Authority for Industrial Cities and Technology Zones (MODON) to plan the construction of localized capacity in Saudi Arabia. Once completed, the Saudi factory will become the company's second overseas production site after the Indian factory. "With a designed capacity of 3GW, supported by the company's global supply chain system, it will have a local delivery capacity of approximately 10GW, meeting the delivery needs of local and surrounding regional projects."

In terms of new products, in 2024, the company launched the world's first wireless multi-point parallel drive system—"Tianrou" flexible tracking bracket system, which is compatible with scenarios such as agrivoltaics, aquavoltaics, pastoral photovoltaics, and wastewater treatment plants, forming "a new growth driver for the company's business."

Zhibang Zhang from Huaan Securities stated that with the decline in module prices, global demand for ground-mounted power station installations is rising, and the installation volume of overseas tracking brackets is showing an increasing trend, with an expected installation volume exceeding 660GW, 2022-2030.

"Due to factors such as market usage habits, product technology, power station construction environments, and power station investment costs, the penetration rate of tracking brackets in China differs significantly from that in overseas markets. In the future, with the acceleration of China's wind and solar power base construction projects (large-scale base projects paired with ultra-high voltage construction will be the main driver of tracking bracket growth), the resolution of electricity consumption issues, and strong policy support, the domestic tracking bracket market is expected to see greater development opportunities," Zhang stated.