What are the energy stocks in Taiwan? A panoramic view of green energy concept stock investment landscape

In the wave of global energy transition, Taiwan’s new energy industry is迎来 unprecedented development opportunities. From policy guidance to market demand, from listed companies to industry prospects, energy stocks have become a key focus for investors. So, which Taiwanese energy stocks are worth关注? How do these companies seize the dividends of the green energy era? This article will systematically outline the investment landscape of Taiwan’s new energy industry.

Core Targets of Taiwan’s Energy Stocks

Delta Electronics (2308): The Hidden Champion in Power Conversion

When it comes to batteries and electronic products, investors first think of Delta Electronics. But this company’s role in energy transition goes far beyond surface perception. Whether solar or wind power generation, their power output stability cannot compare with traditional coal and natural gas, which is precisely where energy storage systems come into play. Delta’s mastery of power conversion technology is widely applied in the new energy field, becoming a key part of green energy deployment.

In the automotive electronics sector, Delta’s technological advantages are also evident. Among the top 20 global automakers, 75% are its clients. As electric vehicle penetration continues to rise, the high thresholds for car manufacturer certification create a competitive moat for Delta.

Data shows that Delta’s consolidated revenue in July 2023 reached NT$34.825 billion, an 8% increase year-over-year, setting a new high for the same period. Looking back at the past three years’ performance trajectory, revenue growth has accelerated: 2022 revenue was NT$384.443 billion (up 22.17% YoY), 2021 was NT$314.671 billion (up 11.35%), and 2020 was NT$282.605 billion (up 5.40%). This accelerated growth is mainly driven by the electric vehicle division, reflecting strong market demand for green energy-related products.

Senwei Energy (6806): From Solar to Offshore Wind Power, a Versatile Player

As a newly listed pure green energy company, Senwei Energy focuses on solar photovoltaic, wind power, and new energy investment development, providing one-stop services from site assessment to completion warranty. After listing in November 2022, the company’s annual revenue reached NT$4.301 billion, and in 2023, it demonstrated strong growth momentum.

Monthly revenue data is particularly convincing. Since entering 2023, Senwei Energy’s monthly revenue has risen significantly, peaking at NT$774 million in April. This growth mainly stems from revenue recognition from Taipower’s offshore wind power Phase II project, which will gradually recognize revenue over the next two years, potentially greatly increasing profitability.

Hua Cheng Technology (1519): Dual-Drive of Grid Upgrades and Charging Piles

As a long-term partner of Taipower in grid projects, Hua Cheng mainly supplies key equipment such as transformers. In September 2022, Taipower launched a ten-year “Enhanced Grid Resilience Construction Plan” with an investment scale of NT$564.5 billion, aimed at comprehensively improving the disaster prevention capacity of the domestic power grid. As an important supplier, Hua Cheng will directly benefit from this large-scale upgrade.

In the field of EV charging piles, Hua Cheng holds nearly 20% market share, leading the industry. As EV adoption increases, demand for charging infrastructure continues to grow. Performance data in the first half of 2023 confirms this trend: June revenue was NT$1.403 billion (up 50.15%), Q2 revenue NT$3.102 billion (up 51.72%), and total revenue for the first half NT$4.643 billion (up 34.96%), all reaching new highs for the same period.

Additionally, the return of manufacturing to the US and the rise of Southeast Asian economies continue to boost demand for electrical equipment. Hua Cheng, as one of Taiwan’s main exporters of heavy electrical equipment, has promising export prospects. However, note that the stock price has already risen 242.56% since the beginning of the year, indicating potential short-term correction risks.

United Renewable Energy (5483): Riding the US Solar Wave

In August 2022, the US Senate passed the Inflation Reduction Act, investing US$369 billion in energy transition, the largest climate and energy investment in US history. According to the US Solar Industry Association, this act is expected to boost solar installation capacity by 69% over the next decade.

As Taiwan’s leading solar energy company, United Renewable Energy directly benefits from this policy windfall. In 2022, its solar business revenue surpassed NT$10 billion, reaching NT$10.25 billion (up 34.5%), demonstrating strong market demand. However, this year, upstream raw material prices for silicon materials, wafers, and cells have fallen, putting pressure on United’s revenue. Investors should closely monitor raw material price cycles and consider entry when prices rebound.

Market Foundations of Taiwan’s Energy Stocks

Renewable Energy Growth Potential Remains Vast

According to the International Energy Agency, in 2022, renewable energy accounted for nearly 30% of the global power system, an increase of 1.5 percentage points from the previous year. However, compared to international levels, Taiwan’s renewable energy development lags significantly.

Official statistics show that in 2022, renewable energy in Taiwan’s power system accounted for only 8.27%, far below advanced European countries (UK 43%, Germany 44%) and neighboring Asian countries (China 32%, Japan 22%). This huge gap highlights the future growth potential of Taiwan’s energy stocks.

Policy-Driven Certainty

The Taiwanese government has set a clear “2025 Non-Nuclear Homeland” goal. Currently, nuclear power accounts for 8.24%, which must be supplemented by other energy sources. The government’s plan includes installing 20 GW of solar PV and 5.6 GW of offshore wind power, with renewable energy expected to account for 15.1% of total power generation by 2025.

This means that in the next two to three years, Taiwan’s renewable energy sector has at least double the growth space, and listed companies in related industries will receive strong policy support.

Strategic Considerations for Energy Security

Taiwan imports 97.3% of its energy consumption, with only 2.7% domestically produced. Ongoing international tensions and the Russia-Ukraine conflict have led to long-term volatility in global energy prices. From an energy security perspective, developing renewable energy has become a national strategic necessity. This provides solid support for the long-term investment value of energy stocks.

Opportunities and Risks in Energy Stock Investment

Investment Opportunities

Green energy companies align with ESG investment principles and may be included in ESG-themed funds, attracting capital inflows. Government subsidies, tax incentives, and policy support accelerate industry growth. The large market gap and increasing electricity demand offer long-term growth potential. The low correlation between renewable energy and traditional utilities, finance, and other sectors can optimize portfolio risk.

Investment Risks

Renewable energy stocks tend to be more volatile than traditional utilities and are susceptible to policy changes and energy price fluctuations. Many energy companies are in early expansion stages, with less stable performance and dividend stability, making them less suitable for investors seeking steady cash flow. The industry is highly competitive, and stock selection requires in-depth fundamental analysis. The emerging sector lacks hedging tools like options, making risk management more challenging.

Core Recommendations for Investing in Energy Stocks

First, recognize the long-term nature of energy stocks. The renewable energy sector is a century-long plan; investors should prepare for long-term holding and avoid short-term thinking. Second, implement risk management. Companies focused on renewable energy often experience performance volatility; control individual stock proportions and build positions gradually. Third, monitor policy changes and upstream raw material prices, as these directly impact stock prices. Maintain sensitivity to market signals. Lastly, select stocks based on your risk tolerance. Conservative investors may focus on companies like Delta Electronics with stable core businesses, while aggressive investors may consider pure green energy companies.

What are the Taiwanese energy stocks? The answer is continuously expanding. As renewable energy industry deepens and markets mature, more companies will enter investors’ view. Grasping policy cycles, understanding industry trends, and managing risks are essential lessons for participating in this emerging sector.