CSIQ bullish over multiyear period, Battery Energy Storage upsidCSIQ may be weak in the short term, but the price leave plenty of potenial upside for a multiyear period.
-deep below tangible book value. price under 20 now and tangible book value near 40.
-2.87 eps next year '25 expected, and 10.00 potential over next 5 years on a under 20$ stock
-62% ownership in CSI solar subsidiary which trades in china , offsets all or most of csiq debt
5 year price target potentials
-tangible book level, stock could initially spike to at least tangible book level (deepvalue)
-as EPS rises, stock could trade at some multiple of earnings , 20-30 multiple on 10 eps?
On BESS and CSI/CSIQ",credit perplexity.ai search
Battery Energy Storage Systems (BESS) are becoming increasingly important in the renewable energy sector, and Canadian Solar Inc. (CSIQ) along with its subsidiary CSI Solar are well-positioned to benefit from the industry's growth over the next 5 years. Here's an overview of the situation:
## BESS Industry Growth
The battery energy storage market is experiencing rapid expansion due to several factors:
- Increasing adoption of renewable energy sources
- Growing need for grid stability and peak demand management
- Declining costs of battery technology
- Supportive government policies and incentives
## Canadian Solar's Position
Canadian Solar, through its subsidiary CSI Energy Storage, has made significant strides in the BESS market:
1. **Product Development**: In 2022, the company launched its proprietary battery storage product called SolBank for utility-scale applications .
2. **Manufacturing Capacity**: CSI Energy Storage announced plans to expand its battery manufacturing capacity from 2.5 GWh to 10 GWh by the end of 2023 .
3. **Project Pipeline**: As of Q2 2022, CSI Energy Storage's system integration pipeline reached 11 GWh, including 861 MWh under long-term service agreements and 1.9 GWh under construction or contracted .
## Benefits for CSIQ and CSI Solar
Over the next 5 years, CSIQ and CSI Solar are likely to benefit from the BESS industry growth in several ways:
1. **Increased Revenue**: The company expects strong growth in its battery energy storage solutions, with shipments anticipated to increase by 500% compared to the previous year .
2. **Market Expansion**: CSI Solar is expanding into new markets, including residential energy storage and power electronics, which will help diversify its revenue streams .
3. **Synergies**: The growth in battery storage solutions will enhance synergies with the company's battery storage project development business .
4. **Competitive Advantage**: The SolBank product is positioned as one of the most bankable and competitive integrated battery storage solutions in the market .
5. **Long-term Contracts**: CSI Energy Storage's pipeline includes long-term service agreements, providing stable revenue streams .
6. **Industry Leadership**: Continuous R&D investment and technological innovation are helping CSI Solar maintain its leading position in the market .
7. **Financial Performance**: CSI Solar projects strong profitability, with net profits expected to reach up to RMB 1.40 billion in the first half of 2024, marking two consecutive quarters of growth .
As the solar-plus-storage market continues to grow, Canadian Solar and CSI Solar are well-positioned to capitalize on this trend. The company's integrated approach, combining solar panel manufacturing with energy storage solutions, provides a competitive edge in the evolving renewable energy landscape.
Citations:
www.cpuc.ca.gov
www.tipranks.com
www.pvtime.org
investors.canadiansolar.com
seia.org
sistinesolar.com
www.csisolar.com
www.sap.com
