EVE Energy (300014.SZ): New supply framework agreement with Fluence

EVE Energy announced before market open on 18 September that the company's subsidiary, EVE Power (unlisted), has entered into a framework agreement with Fluence (FLNC US, not rated) for battery supplies over 2027-31. Under the agreement, EVE is committed to deliver 16GWh battery shipments to FLNC in 2027, with reserved capacity of 190GWh over 2028-31, totaling 206GWh over the period. Fluence is a US-based energy storage system (ESS) player with a contracted backlog of 12.6GW and a pipeline of 45.6GW/163.7GWh as of June 2026. We believe the framework agreement indicates EVE's product competitiveness in penetrating the global ESS market. We expect the company to ship from its domestic production facility in the near term, followed by potential shipment from its newly-built facility in Malaysia after capacity ramp-up over 2027-28F. The company is on track to achieve its 140-150GWh target for 2027E, with upside on unit profitability given new overseas order intake, though conversion from c