The U.S. President Joe Biden authorized the Defense Production Act that allows solar panels from Thailand, Malaysia, Cambodia and Vietnam to be imported to the U.S. without duty for a 24-month period to pump domestic manufacturing of solar panel components and other electronics parts required for the power grid and equipment like electrolyzers and fuel cells.
The share price of Sunrun (Nasdaq: RUN) rose 5.94%, Sunpower (Nasdaq: SPWR), Enphase Energy (Nasdaq: ENPH) gained 5.41%, SolarEdge Technology (Nasdaq: SEDG) increased 2.86% and Array Technologies (Nasdaq: ARRY) jumped 18%.
According to Maybank Securities (Thailand) (MST), there will be no direct benefit to SET-listed companies as most of the factories in Thailand are Chinese factories that export to other countries. Meanwhile, Solartron Public Company Limited (SET: SOLAR) is focusing on domestic EPC.
However, MST expected industrial estates where these Chinese factories are located such as AMATA to benefit indirectly as well as exporters such as WICE.
