Canadian Solar Inc. (NASDAQ:CSIQ) Q4 2023 Earnings Call Transcript

Brian Lee: Great. That’s helpful. Last one for me and I’ll pass it on. All this color is super helpful from a modeling perspective. If I look at your storage volume targets, and then I look at kind of where pricing is for solar panels versus where they started the year. It kind of — and you’re basically at the midpoint implying about $1 billion of incremental revenue growth ’24 versus 23. It seems like almost all of it is coming from storage and very little revenue growth in modules. I guess, one, is that the right assumption? And then two, what should we be thinking about the energy business you did about $500 million of revenue in ’23. Presumably, that would be flat or down given you’re hanging on to some projects or what should the directionality of modeling for revenue across the three buckets look like module versus battery? Obviously battery up a lot, maybe all of it, but module versus energy in terms of revenue growth year-on-year.

Shawn Qu: Yeah. This is Shawn speaking. We will see some revenue growth even on the solar module side, although, the module growth is not proportional to the volume growth because of the ASP job from 2023 to 2024. But meanwhile, yes, you are right, the e-STORAGE revenue growth will be significant. The e-STORAGE revenue, first of all, volume-wise e-STORAGE will grow from less than two gigawatt hour in 2023 to 6 gigawatt hour to 6.5 gigawatt hour in 2024. Now, the ASP for this storage also dropped a little bit comparing with 2023, but not that significant. So yes, the revenue growth of e-STORAGE will be very strong. On the Recurrent side, you are also right that we will hold on — plan to hold on most of our project in U.S. and in Europe.

We will probably sell some of our project in Latin America and in Japan. But overall, we are holding more assets, a lot more assets this year. So you are not going to see that much revenue contribution from Recurrent. However, we are building a significant recurring revenue by holding the project. So in a year or so — in 2025 or 2026 time zone, you will see strong — start to see strong revenue contribution from Recurrent.

Brian Lee: Okay. Thanks, everyone. Thank you, Shawn. I appreciate. I’ll pass it on.

Operator: Thank you. Ladies and gentlemen, we’ve come to the end of our time allowed for questions. I’ll turn the floor back to management for any final comments.

Shawn Qu: Thank you for joining us today and for your continued support. If you have any questions or would like to set up a call, please contact our Investor Relations team. Take care and have a nice day.

Operator: Thank you. This concludes today’s conference call. You may disconnect your lines at this time. Thank you for your participation.