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Enphase (ENPH) Unveils IQ8P in Thailand and the Philippines

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Enphase Energy, Inc. (ENPH - Free Report) recently commenced shipment of its new microinverter, IQ8P, with a peak output power of 480 watts (W), in Thailand and the Philippines’ solar markets. These microinverters will support residential and commercial applications.

Significance of IQ8 Microinverters

Enphase Energy’s most powerful microinverter to date, the IQ8P, is designed to use low-voltage alternating current (AC) power instead of high-voltage direct current (DC) power. The IQ8P can seamlessly pair with a full range of solar modules up to 640W DC.

For all IQ8P Microinverters activated in Thailand and the Philippines, a 15-year limited warranty is available.

ENPH’s Prospects in Asia’s Solar Market

Enphase Energy is steadily gaining momentum in Asia’s solar market. The company started shipping its IQ8 Microinverters in India in October 2023. It is also shipping the IQ8P Microinverters to the residential markets of Vietnam. The latest launch seems to be in line with the company’s plan to enter many more new countries in Asia throughout 2024 with its microinverters.

Such endeavors are likely to provide meaningful gains to the company in the days ahead, which can be further gauged by a recent projection by Statista. Per this report, Asia’s electricity generation in the solar energy market is estimated to witness a CAGR of 4.66% during 2024-2028.

In light of such projections, we expect Enphase Energy to continue with its expansion plans in Asia by launching its microinverters in more Asian nations in the days ahead, thereby potentially enhancing its revenue generation prospects in the region.

Peers to Benefit

Other prominent players like Canadian Solar (CSIQ - Free Report) , First Solar (FSLR - Free Report) and Emeren Group (SOL - Free Report) are also expanding their footprint to reap the benefits of expanding Asia’s solar energy market.

Canadian Solar has a strong presence in the Asian region. The region, excluding China and Japan, had a 2,311 megawatt-peak (MWp) solar development project pipeline as of Jan 31, 2023, for CSIQ. The Asian region (except China) accounted for 12% of the total revenues, while China solely represented 28% of the total.

CSIQ has a long-term (three-to five-years) earnings growth rate of 25%. The Zacks Consensus Estimate for its 2024 sales implies an improvement of 15.8% from the prior-year figure.

First Solar has manufacturing facilities in Malaysia, Vietnam and India. As of Feb 27, 2024, FSLR had total booking opportunities of 8.9 gigawatts (GWs) from India. In 2024, the company expects to produce and sell 2-2.2 GWs of modules in India.

FSLR has a long-term earnings growth rate of 43%.  The Zacks Consensus Estimate for its 2024 sales implies an improvement of 35.6% from the prior-year figure.

Emeren Group mainly develops projects in the East and South of China, with the region accounting for 13% of the total revenues during 2023. Currently, Emeren is operating about 170 MW of commercial and industrial solar projects in China. As of Dec 31, 2023, the company had 82 MW of solar development pipeline in China.

The Zacks Consensus Estimate for SOL’s 2024 sales implies an improvement of 42% from the prior-year figure. Its share price has soared 14.2% in the past five years.

Price Performance

In the past six months, shares of ENPH have rallied 3.5% against the industry’s 5% decline.

Zacks Investment Research
Image Source: Zacks Investment Research

Zacks Rank

Enphase Energy currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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