Heat Pump Heat Increase in Europe market

Date:2023-01-09 12:56:12

It is reported that the EU will formulate a "digital energy system" plan, which will be officially announced next week. The plan will call for the EU to invest 565 billion euros in infrastructure by 2030 to achieve its green plans and end its dependence on Russian fossil fuels. The document proposes several green action plans: installing solar panels on the roofs of all commercial and public buildings in the EU by 2027; installing solar panels on all new residential buildings in the EU by 2029; Install 10 million heat pumps in the next 5 years; put 30 million zero-emission vehicles on the road by the end of 2030.

The European Union's "Renewable Energy Act" proposes a plan to reduce carbon emissions to 55% of 1990 levels by 2030. Traditional petrochemical energy uses combustion to generate heat for heating, but it will generate a lot of greenhouse gases; while heat pumps use electricity as energy and use "heat transfer" to achieve cooling/heating, taking into account the accelerated development of clean power generation such as photovoltaics and hydrogen in Europe In this way, the adoption of heat pump heating will effectively reduce carbon emissions and help the EU achieve the goal of reducing carbon emissions by 55%.

According to the data of the European Photovoltaic Industry Association and the European Heat Pump Association: in 2021, the new installed capacity of photovoltaics in the 27 EU countries will be about 26GW, a year-on-year increase of 34.2%; the sales volume of heat pumps in the 21 EU countries will be 2.18 million units in 2021, a year-on-year increase of 34.6%. Essence Securities research report shows that under the goal of carbon neutrality, Europe has frequently issued support policies for photovoltaics and heat pumps in various countries, and it is expected to become the region with the fastest popularization of photovoltaic heat pumps in the future. Based on the current number of households in Europe and the United States, the market space for photovoltaic heat pumps in the future may reach 140 billion US dollars.

CITIC Securities stated that the European Parliament passed the "Renewable Energy Development Act", which will increase the proportion of renewable energy to 45% in 2030. In the energy crisis caused by geopolitical conflicts, Europe will accelerate the development of a comprehensive transition to renewable energy. The passage of this bill once again demonstrates Europe's determination to transition to new energy. Powered by renewable energy, heat pump heating with nearly zero emissions may be the best solution for European heating methods. The bank continues to be optimistic about the high prosperity of European heat pumps. It is recommended to pay attention to air-conditioning giants with stronger homology with heating heat pump technology, as well as the heat pump industry Parts companies with a higher degree of benefit from the chain.

According to market news, according to a CCTV financial report, many European countries are about to enter winter. However, due to the increasing shortage of natural gas, some Europeans have begun to hoard coal, and some have turned to purchase household heating equipment that consumes less energy. The demand for energy-saving heating has increased, and the orders of related enterprises in my country have increased significantly, especially the hot momentum of air source heat pump production has continued since the beginning of the year. Some production companies said that in the first half of the year, exports increased by 200% year-on-year, the actual revenue reached 200%, and the order volume in hand increased by 10 times.

In addition, a reporter learned from the investor relations department of Sanhua Intelligent Controls that regarding the company's European heat pump-related business, relevant sources said that it is inconvenient to disclose specific data. However, due to the energy shortage in Europe, heat pump temperature control, heat pump air conditioners, heat pump water heaters, etc. have brought growth to the company. At the same time, the above-mentioned person revealed that this is mainly the business of the subsidiary company, and it is understood that the production is indeed relatively busy now.

Since the beginning of this year, the export of air source heat pumps in my country has grown rapidly, and the export volume from January to July has increased by 63.7% year-on-year. Small household appliance companies are also increasing their weight in the European market. China is the world's largest exporter of heat pumps, accounting for about 60% of the world's production capacity. The domestic market is expected to benefit from the steady growth of the "dual carbon" target, while exports will benefit from overseas demand. The boom is gradually becoming a new driving force. According to estimates, the domestic heat pump market is expected to grow in 2025. It is expected to reach 39.6 billion yuan, with a CAGR of 18.1% from 2021 to 2025; in the context of the energy crisis in the European market, many countries are actively introducing heat pump subsidy policies. %. With the support of European orders, the industrialization process of domestic heat pumps will be fully accelerated, and related export companies are expected to benefit.

Cinda Securities stated that the heat pump market took the lead in breaking out in Europe, and the increase in penetration rate is sustainable. Under the goals of energy security and carbon emission reduction, de-gasification in the European market will be a long-term inevitable trend, with a potential scale of more than 40 million units, corresponding to a market size close to one trillion. With the expansion of market size and the increase of the localization ratio of core components, the heat pump industry is expected to replicate the growth path of my country's air-conditioning industry.

CITIC Securities pointed out that in the long run, Europe will further accelerate the deployment of renewable energy in order to seek energy independence and get rid of external energy dependence; with the further installation of photovoltaic energy storage in Europe, electricity-based air source heat pump heating will become the first choice to replace fossil fuels , which is bound to promote the popularity of heat pump products in Europe. my country is the world's largest air source heat pump market, and 1.061 million units will be exported to Europe in 2021, accounting for half of its sales. With the continuous high prosperity in the European market, my country's export-related enterprises have benefited the most.

Related concept stocks:

Dayuan Pump Industry (603757.SH): The company is the leader of canned pumps in China. Its main business includes civil water pumps, household canned pumps and industrial canned pumps. The hot water circulating canned pump produced by its subsidiary Hefei Xinhu is the core component of gas wall-hung boilers and air energy heat pumps, and has successfully entered the supply system of international first-line brands such as Vaillant. According to the Xinhu public account, since 2005, Hefei Xinhu has been making continuous efforts in heat pump special pump products. Up to now, Xinhu has applied more than 600,000 water pumps for the northern coal-to-electricity project, and about 100,000 pumps for foreign heat pump systems. tower.

Sunrise Dongfang (603366.SH): The company’s main business is solar water heaters (40% of revenue in 2021, the same below), kitchen appliances (21% of revenue), air source heat pumps (14% of revenue) and other products. The company deployed air energy heat pump products earlier, and now has a certain sales scale. In 2021, the company's air energy heat pump product revenue will be 600 million yuan, YoY+120.4%, and its products cover hot water, heating, and swimming pools. According to the announcement, the company's air energy heat pump production bases are mainly located in Lianyungang and Shunde. The heat pump business in 2022H2 will also usher in a peak sales season (especially in the heating market), with strong demand in overseas markets. As an important domestic exporter of heat pumps, it is expected to benefit from the outbreak of overseas demand for heat pumps.

Wanhe Electric (002543.SZ): The company's main products are water heaters (46% of revenue) and kitchen appliances (46% of revenue). It is a leading enterprise in the domestic water heater industry, with product, channel and brand advantages, and has great potential for the development of air energy heat pump business. The subsidiary "Guangdong Wanhe New Energy Technology Co., Ltd." is responsible for the business related to air energy heat pumps. The subsidiary's revenue in 2021 will be 93.33 million yuan, and its performance will be 1.69 million yuan, compared with -790,000 yuan in the same period last year. Most of the air energy heat pump products are mainly in Western Europe.

Snowman (002639.SZ): The company recently stated on an interactive platform that the European energy crisis has made European customers pay more attention to the energy-saving properties of thermal energy products. The company's high-efficiency energy-saving heat pump products suitable for CO2, NH3 and other environmentally friendly and low-carbon refrigerants can be used in the production of process hot water in the industrial field, commercial central heating, and domestic hot water supply. Among them, the air source heat pump using CO2 refrigerant developed by the company is more environmentally friendly than conventional freon heat pumps, and has a higher COP energy efficiency index at low ambient temperatures, which meets the needs of current European customers. The company's heat pump products have already obtained bulk orders in European markets such as Germany and the Netherlands, and are currently being delivered in succession.