Sungrow Power Supply Co., Ltd. (300274)

Equity Research Report | Sector: PV inverters, energy storage systems and new-energy power electronics equipment | Report date: September 13, 2026 | As of the close on September 11, 2026; September 12 and 13 are weekend market closures

This report was automatically compiled by AI based on public information and is for reference only. It does not constitute investment advice.

1. Core Summary

Sungrow Power Supply faced operating pressure in H1 2026: revenue of RMB 30.912 billion, down 28.99% year on year; net profit attributable to shareholders of RMB 5.259 billion, down 32.01% year on year; non-GAAP net profit attributable to shareholders of RMB 4.275 billion, down 42.96% year on year. Among this, energy storage system revenue was RMB 15.456 billion, down 13.18% year on year, with gross margin falling to 32.43%; revenue from PV inverters and other power electronics conversion equipment was RMB 12.388 billion, down 19.17% year on year; new-energy investment and development revenue was approximately RMB 1.258 billion, down approximately 85% year on year. Although net cash flow from operating activities rose 8.75% year on year to RMB 3.735 billion, Q2 net profit rose 29.50% quarter on quarter, and gross margin improved quarter on quarter to approximately 38.62%, current core operating profitability remains clearly weaker than in 2025.

The company recorded 2025 revenue of RMB 89.184 billion and net profit attributable to shareholders of RMB 13.461 billion; energy storage systems and PV inverters and other power electronics conversion equipment together accounted for approximately 76.72% of revenue; overseas revenue was RMB 53.992 billion, with its share rising to 60.54%, while the revenue share of energy storage also increased from 32.06% in 2024 to 41.81%. The company's competitiveness mainly comes from PCS, power electronics technology, grid-forming and grid-connection control, global channels, brand and project delivery capabilities, rather than control over upstream battery cells or chip resources; energy storage battery cells rely to a relatively large extent on external suppliers, and business profitability remains affected by price competition and bargaining over key raw materials.

The growth logic remains concentrated in energy storage systems, overseas inverters and the subsequent AIDC power supply business. In H1 2026, energy storage shipments were approximately 25GWh, up 28% year on year, but revenue declined and gross margin fell 7.49 percentage points year on year, showing that shipment growth has not yet fully translated into revenue and profit growth. Institutional forecasts for 2026-2028 earnings differ considerably; the mainstream consensus forecast for net profit attributable to shareholders is approximately RMB 14.321 billion, RMB 18.115 billion and RMB 21.655 billion, but the above forecasts are not company earnings guidance.

As of September 11, 2026, the company's share price was RMB 84.40, at a low level over the past 52 weeks; MA5, MA10 and MA20 were in a bearish alignment, MACD remained in a weak range, and main funds recorded a cumulative net outflow of approximately RMB 3.705 billion over the most recent 10 trading days. RSI6 was 16.2, reflecting short-term oversold conditions, but no clear signal of a volume-backed stabilization and trend reversal has yet formed. The company has disclosed a share repurchase plan of RMB 500 million to RMB 1 billion; as of August 31, it had cumulatively repurchased 3.0476 million shares and paid approximately RMB 325 million, with the purpose of the repurchase being to implement an employee stock ownership plan or equity incentive plan in the future.

2. Company Overview

2.1 Basic Information

2.2 Main Business and Product Layout

• PV inverters and other power electronics conversion equipment
• Energy storage systems, including energy storage converters, energy storage battery systems, system integration and related solutions
• New-energy investment and development, mainly conducted through Sungrow New Energy for the development, construction, transfer and operation of PV, wind power and other power stations
• Wind power conversion and drive products
• New-energy vehicle electronic control and power supply systems
• Charging equipment
• Hydrogen energy equipment
• Smart energy operation and maintenance
• AIDC power supply business, newly disclosed in the 2025 annual report, mainly providing solid-state transformer SST and power supply solutions
• 2025 revenue structure: energy storage systems revenue of RMB 37.287 billion, accounting for 41.81%; PV inverters and other power electronics conversion equipment revenue of RMB 31.136 billion, accounting for 34.91%; new-energy investment and development revenue of RMB 16.559 billion, accounting for 18.57%; PV power station power generation revenue of RMB 1.310 billion, accounting for 1.47%; other business revenue of approximately RMB 2.893 billion, accounting for 3.24%
• 2025 industry basis: PV industry revenue of RMB 44.550 billion, accounting for 49.95%; energy storage industry revenue of RMB 37.287 billion, accounting for 41.81%; other revenue of RMB 7.348 billion, accounting for 8.24%. The revenue share of energy storage increased from 32.06% in 2024 to 41.81% in 2025

2.3 Position in the Industry Chain Upstream and Downstream and Cost-Profit Structure

Sungrow Power Supply is located in the midstream of the new-energy industry chain, skewed toward system integration and power electronics equipment, with businesses spanning PV inverters, energy storage systems and new-energy power station development. The company is not an upstream resource monopolist and mainly relies on power electronics technology, system integration, brand and global delivery capabilities to capture value in the industry chain.

• Main inputs for PV inverters and wind power converters include power semiconductor devices, IGBT and other power modules, magnetic components, PCB, capacitors, resistors, structural parts, heat dissipation components, cables and control devices.
• Core inputs for energy storage systems include lithium battery cells, PCS, BMS, EMS, containers or cabinets, thermal management, fire protection and auxiliary electrical equipment; PowerTitan 2.0 uses 314Ah cells, reflecting that cells are a key externally procured link.
• Sunwoda Electronics and REPT BATTERO appeared among major suppliers in 2025, and CALB appeared among major suppliers in 2024, indirectly indicating that energy storage cells rely to a relatively large extent on external battery suppliers.
• As of December 31, 2025, purchases from the top five suppliers amounted to RMB 11.924 billion, accounting for 25.12% of total annual procurement; the largest supplier accounted for 14.59% of total procurement.
• The annual report classifies a large amount of PV and energy storage business costs uniformly as "raw materials" and does not fully disclose the specific cost proportions of IGBT, battery cells, PCS, structural parts, etc., so it is impossible to precisely calculate the contribution of individual materials to gross margin.
• The company has advantages in procurement scale, supply chain organization, product certification, system integration and global delivery, but its bargaining power over chips, battery cells and key electrical components is not absolutely strong; for standardized products such as lithium battery cells, it remains to a relatively large extent a price taker.
• Downstream customers include large power groups and central state-owned energy enterprises, PV, wind power and energy storage project developers, EPC general contractors, overseas energy companies and power infrastructure investors, commercial and industrial customers, home energy customers and new-energy vehicle manufacturers.
• Sales to the top five customers in 2025 amounted to RMB 15.123 billion, accounting for 16.96% of total annual sales; this figure was disclosed in the 2025 annual report, versus 19.79% in 2024. In 2025, the largest customer, Algihaz Contracting Company, accounted for 4.50%, China Energy Engineering Group for 3.51%, China Construction Investment Leasing for 3.40%, Hubei United Investment for 2.89%, and Larsen & Toubro for 2.66%.
• Customer concentration is generally lower than supplier concentration, but large energy storage projects are sizable, and a single overseas project may still affect quarterly revenue recognition; some customer names are disclosed as Customer 1, Customer 2, Customer 3, etc., making it impossible to fully determine the final project type and region of all customers.
• For PV inverters and energy storage equipment supplied to large power stations, EPCs and overseas projects, customers usually engage in tender-based price comparison, with price, delivery, warranty, grid-connection performance and financing acceptability jointly affecting orders.
• Global brand, bankability, project experience and after-sales service can create a certain premium, but as inverter standardization increases, domestic competition intensifies and the number of energy storage system suppliers grows, customers still have relatively strong bargaining power.
• Downstream customers of the new-energy investment and development business are mainly central and local state-owned enterprises, local energy groups and industrial capital, and project development revenue is affected by power station transfer pace, financing conditions and project returns.
• As of December 31, 2024, the book balance of accounts receivable was approximately RMB 30.523 billion, of which accounts receivable within one year were RMB 25.476 billion; the accounts receivable turnover ratio was approximately 3.19x, corresponding to turnover days of approximately 113 days, and accounts receivable accounted for approximately 39% of 2024 revenue. This accounts receivable turnover data comes from public financial data compilation, and formal reports should preferentially verify it against the company's original annual report financial statements and audit basis. In 2025, net cash flow from operating activities was RMB 16.918 billion, up 40.18% year on year, which the annual report explained was mainly related to improved collection efficiency, indicating some improvement in cash collection; however, receivables, contract assets and collections from overseas customers in project-based businesses still constitute working capital risk.
• As of December 31, 2025, the top five suppliers accounted for 25.12% of total annual procurement, and the top five customers accounted for 16.96% of total annual sales, with supplier concentration higher than customer concentration. The customer concentration data was disclosed in the 2025 annual report, and the top five customer share in 2024 was 19.79%; supplier and customer details are affected by annual report disclosure standards, and some customer names were not fully disclosed, with the latest annual report being authoritative.

The company is positioned in the midstream of the new-energy industry chain, skewed toward power electronics equipment and system integration, with profitability higher than pure low-end manufacturing, but it does not have control over upstream resources such as battery cells and chips. Future gross margin improvement mainly depends on whether the share of energy storage and high-value overseas inverters can rise, product mix upgrading, brand premium, scale manufacturing and cost control, and whether new scenarios such as energy storage safety and grid-forming technology, localized capacity and AIDC can create sustained incremental growth; in 2025, AIDC power supplies and solid-state transformers were still in the layout and expansion stage and should not be regarded as mature main businesses already at the same scale as inverters and energy storage.

3. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

Data as of September 12, 2026; the latest financial report is the 2026 interim report. H1 2026 non-GAAP net profit attributable to shareholders was RMB 4.275 billion, down 42.96% year on year; basic earnings per share were RMB 2.56, weighted average return on equity was 10.73%, and net cash flow from operating activities was RMB 3.735 billion, up 8.75% year on year.

Revenue and profit came under year-on-year pressure in H1 2026, with the decline in non-GAAP net profit attributable to shareholders greater than that in net profit attributable to shareholders, indicating more obvious pressure on core operating profitability. H1 consolidated gross margin was 35.92%, up 1.56 percentage points year on year; net margin was approximately 16.69%, down approximately 1.30 percentage points year on year. Q2 consolidated gross margin was approximately 38.62%, up 5.35 percentage points quarter on quarter, and net profit attributable to shareholders rose 29.50% quarter on quarter, indicating some improvement in product mix and the share of high-gross-margin overseas markets. By business, H1 energy storage system revenue was approximately RMB 15.456 billion, down 13.18% year on year, shipments were approximately 25GWh, up 28% year on year, and gross margin was 32.43%, down 7.49 percentage points year on year; PV inverters and other power electronics conversion equipment revenue was approximately RMB 12.388 billion, down 19.17% year on year, with shipments of approximately 66GW; new-energy investment and development business revenue was approximately RMB 1.258 billion, down approximately 85% year on year. Financial expenses rose 239.94% year on year, and H1 exchange losses were approximately RMB 587 million, weighing on profit.

3.2 Earnings Forecasts

The above is a summary of institutional earnings forecasts from Tonghuashun F10 as of early September 2026, with approximately 33 institutions forecasting 2026, 32 forecasting 2027 and 31 forecasting 2028; it is not official company earnings guidance. The forecast range for net profit attributable to shareholders disclosed in the research notes is approximately RMB 12.329 billion to RMB 17.022 billion for 2026, approximately RMB 14.502 billion to RMB 20.900 billion for 2027, and approximately RMB 17.469 billion to RMB 28.500 billion for 2028, indicating considerable institutional divergence.

3.3 Valuation Level and Institutional Ratings

As of the close on September 11, 2026, the share price was RMB 84.40 and total market capitalization was approximately RMB 174.979 billion. Valuation disclosed by different databases differs: Futu data showed PE-TTM of approximately 15.93x, static PE of approximately 20.73x and PB of approximately 3.49x; China Finance Network data showed PE of approximately 15.93x, non-GAAP PE of approximately 18.21x and PB of approximately 3.29x; Lixinger data as of September 10, 2026 showed PE-TTM of approximately 16.22x, PB of approximately 3.55x, and PE-TTM historical percentile of approximately 50%. Based on Tonghuashun's institutional consensus EPS, the 2026E, 2027E and 2028E PE are approximately 12.2x, 9.7x and 8.1x respectively; based on Huatai Securities' EPS forecasts, approximately 10.7x, 8.6x and 7.5x respectively; based on China Post Securities' EPS forecasts, approximately 13.9x, 10.6x and 9.3x respectively. The valuation corresponding to current share price for 2026 earnings is roughly in the 12-14x PE range, below the approximately 19-20x 2026E PE used in some institutional reports, but this discount also reflects uncertainties such as the 2026 profit decline, energy storage gross margin volatility, U.S. policy risk, exchange rate fluctuations and revenue recognition timing. Institutional target prices range from RMB 121.80 to RMB 201.44. Domestic institutions are generally positive overall, but earnings forecasts and target prices differ considerably. Going forward, key areas to track include the repair of energy storage system gross margin, whether inventory translates into revenue or creates impairment pressure, changes in exchange losses, and the realization of H2 2026 energy storage deliveries and 2027 AIDC business orders.

4. Recent News and Announcements

4.1 Sungrow Power Supply Discloses RMB 500 Million to RMB 1 Billion Share Repurchase Plan

Sungrow Power Supply held the second meeting of the sixth board of directors on August 2, 2026, at which it approved a share repurchase plan, and disclosed the announcement on August 3, 2026. The purpose of the repurchase is to implement an employee stock ownership plan or equity incentive plan at an appropriate time in the future; the repurchase method is centralized bidding through the Shenzhen Stock Exchange trading system; the total repurchase funds shall be no less than RMB 500 million and no more than RMB 1 billion; the upper limit of the repurchase price is RMB 188 per share; the expected repurchase volume is approximately 2.6596 million to 5.3191 million shares, accounting for approximately 0.13% to 0.26% of the company's total share capital; the repurchase period is 12 months from the date of approval by the board of directors, expected to run through August 2, 2027. On the announcement disclosure date, the company had not received reduction plans during the repurchase period from directors, senior management, shareholders holding more than 5% of shares, or their concert parties.

4.2 First Repurchase Completed, Repurchase Plan Enters Execution Stage

The company implemented its first repurchase on August 6, 2026, repurchasing 471,800 shares, accounting for approximately 0.0228% of the company's total share capital; the highest transaction price was RMB 106.64 per share and the lowest transaction price was RMB 105.26 per share, with total transaction value of RMB 49,993,778, excluding transaction fees.

4.3 Cumulative Repurchase of 3.0476 Million Shares as of August 31, 2026

The company disclosed a repurchase progress announcement on September 2, 2026. As of August 31, 2026, the company had cumulatively repurchased 3,047,601 shares, accounting for 0.1470% of the company's total share capital; the highest repurchase transaction price was RMB 114.99 per share and the lowest was RMB 97.81 per share; cumulative funds paid were RMB 324,964,267.85, including transaction fees. Based on repurchase volume, approximately 114.6% of the lower limit of 2.6596 million shares had been completed; based on amount, approximately RMB 325 million had been used, accounting for approximately 65.0% of the minimum repurchase amount of RMB 500 million. The company will continue to implement repurchases during the repurchase period based on market conditions. The above is official data as of August 31, 2026; no new monthly repurchase progress disclosed before September 12, 2026 has been identified.

4.4 China Securities Investor Services Center Nominates Independent Director and Publicly Solicits Voting Rights

The company disclosed the "Announcement on Public Solicitation of Voting Rights by China Securities Investor Services Center Co., Ltd." on September 3, 2026. China Securities Investor Services Center nominated Zhang Donghua as an independent director candidate to the board of directors of Sungrow Power Supply and publicly solicited voting rights from all shareholders on the relevant independent director election proposal. This matter relates to corporate governance and minority investor protection arrangements; it is not a shareholder reduction or increase, nor is it a penalty, regulatory measure or disciplinary action against the company.

4.5 Company Plans to Convene the First Extraordinary General Meeting of Shareholders in 2026

As of September 12, 2026, company announcements show that it plans to convene the first extraordinary general meeting of shareholders in 2026 on September 15, 2026, to review the "Proposal on Nominating an Independent Director Candidate" and the "Proposal on Providing Guarantees for Subsidiaries." As the shareholders' meeting has not yet been held, the relevant matters remain pending review as of the date of these notes and cannot be regarded as having been approved.

4.6 2026 Interim Report: Revenue and Net Profit Declined Year on Year

The company's 2026 interim report was disclosed on August 29, 2026. As of June 30, 2026, revenue was RMB 30.912 billion, down 28.99% year on year; net profit attributable to shareholders of the listed company was RMB 5.259 billion, down 32.01% year on year; net cash flow from operating activities was RMB 3.735 billion, up 8.75% year on year; gross margin was 35.92%, up 1.56 percentage points year on year. The company plans to distribute a cash dividend of RMB 6.4 per 10 shares, with total cash distribution of approximately RMB 1.317 billion, based on 2,057,484,410 shares after excluding repurchased shares in the repurchase special securities account, and will not increase share capital from capital reserve. As of the date of these notes, this profit distribution plan remains a preliminary plan approved by the board of directors and still needs to go through relevant procedures.

4.7 Employee Stock Ownership Plan Completed Share Purchase; Controlling Shareholder Has Prior Pledge Record

According to public shareholder activity information, Sungrow Power Supply's 2026 employee stock ownership plan completed its share purchase on May 29, 2026, increasing holdings by approximately 7.2133 million shares. The controlling shareholder and actual controller Cao Renxian had partial share pledges and pledge changes from April to June 2026, pledging 6 million shares on April 28, 2026, and relevant announcements on June 1, 2026 showed an additional or changed pledge of 3 million shares. The above matters predate August to September 2026, and public searches did not identify new announcements of large pledges, release of pledges or reductions by the controlling shareholder as of September 12, 2026.

4.8 No New Earnings Preview, Major Penalty or M&A Matters Identified

As of September 12, 2026, no separate earnings preview or earnings flash report newly disclosed by Sungrow Power Supply in September 2026 has been identified; no new administrative penalty announcements, new regulatory letters, disciplinary actions or investigation announcements by the Shenzhen Stock Exchange or the CSRC have been identified; no new major mergers and acquisitions, asset acquisitions or disposals, major equity investments, changes of control or major asset restructuring announcements have been identified. The above "not identified" statements are based only on public web pages and announcement search results, and the final authoritative source should be CNINFO, the Shenzhen Stock Exchange and company announcements.

5. Share Price Trend and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

As of September 11, 2026, Sungrow Power Supply closed at RMB 84.40, in the lower region of the past 52 weeks, and touched an intraday stage low of RMB 83.12. MA5, MA10 and MA20 were in a bearish alignment, MACD was below the zero line and DIF was below DEA, so the main trend remains weak; at the same time, RSI6 was 16.2, in the traditional oversold range, so a short-term technical repair is possible. The Bollinger middle band and MA20 at approximately RMB 98.96 constitute relatively strong medium-term resistance, while the lower band at approximately RMB 74.36 is a lower technical observation area. The recent decline was accompanied by明显放量, and main funds recorded a cumulative net outflow of approximately RMB 3.705 billion over the most recent 10 trading days, with continuous net outflow over the most recent 4 trading days; no clear volume-backed stabilization and trend reversal signal has yet formed.

5.3 Short-Term Trend Outlook (Next Week, Scenario Simulation, for Reference Only)

⚠️ Risk warning: The following content is only a subjective scenario simulation based on the closing data of September 11, 2026 and historical technical indicators. It does not constitute investment advice and is not a deterministic forecast of future share prices.

① Key Technical Levels

② Next-Week Scenarios (Subjective Weights, Not Statistical Probabilities)

• Low-level consolidation (relatively high subjective weight, approximately 50%; a subjective judgment based on current technical and fund flow conditions, not a statistical probability): reference price range of RMB 82-89. Trigger conditions are that the RMB 83-84 area is not effectively broken below, turnover remains in the recent normal range of approximately RMB 2.7-4.0 billion, and the net outflow of main funds narrows. It may manifest as the share price repeatedly testing for a bottom near RMB 83, then being suppressed by short-term moving averages after rebounding to the RMB 86.8-88.0 area. RSI6 oversold provides the possibility of technical repair, but MACD remains below the zero line and moving averages are in a bearish alignment, so this is closer to weak consolidation than a trend reversal.
• Weaker downside (medium subjective weight, approximately 30%; a subjective judgment based on current technical and fund flow conditions, not a statistical probability): reference price range of RMB 76-84. Trigger conditions are that the RMB 83 area is broken below on volume while main funds continue relatively large net outflows, or the PV and energy storage sectors continue to weaken. It may manifest as the share price moving toward the Bollinger lower band near RMB 74.36, with technical rebounds appearing in the RMB 76-80 range during the process. If turnover when breaking below RMB 83 is clearly higher than the recent normal range of RMB 2.7-4.0 billion, selling pressure may still not be fully released; if the break below occurs on shrinking volume, it is necessary to distinguish between a trend breakdown and short-term fluctuation.
• Rebound strengthening (relatively low subjective weight, approximately 20%; a subjective judgment based on current technical and fund flow conditions, not a statistical probability): reference price range of RMB 86-93. Trigger conditions are that the share price regains the RMB 86.8-88.0 resistance area and stays above it for at least one consecutive trading day, while turnover expands to more than RMB 4.5 billion and main funds shift from continuous net outflow to net inflow. It may first rebound toward RMB 90-93; only if volume and price continue to cooperate should a further challenge to MA20 and the Bollinger middle band resistance near RMB 97-100 be observed. RSI oversold alone is not sufficient to confirm a strengthening rebound.

③ Fund and Liquidity Background

As of September 11, 2026, turnover over the most recent 5 complete trading days was approximately RMB 2.703-3.984 billion, and the turnover rate was approximately 1.97%-2.98%; turnover over the most recent 10 trading days was approximately RMB 2.703-10.113 billion, with August 31 showing明显放量 due to the sharp decline. On September 11, turnover was RMB 3.984 billion, the turnover rate was 2.98%, and the volume ratio was approximately 0.94, while main funds remained in a state of continuous net outflow. Sungrow Power Supply is an actively traded large-cap stock and generally does not have the extreme liquidity risk of small-cap stocks, but after a low-level volume-backed decline, a stable volume-backed rebound has not yet formed, and short-term chips are still being exchanged. As of July 31, 2026, announcements disclosed that the top ten shareholders held approximately 39.75% in aggregate, and the top ten unrestricted shareholders held approximately 21.87% in aggregate; as of June 30, 2026, the total number of shareholders was 279,457, down 10.48% from March 31, 2026, but still明显增加 from mid-2025. Among the top ten shareholders are institutional or quasi-institutional accounts such as Hong Kong Securities Clearing, E Fund ChiNext ETF, China Life traditional insurance products, private equity funds, ETFs and employee stock ownership plans, but concentration is mainly contributed by the largest shareholder Cao Renxian. The above shareholder data are as of July 31, 2026 and June 30, 2026 respectively, lagging the September 11, 2026 market data, and cannot fully represent the real-time chip structure. Regarding margin trading, as of September 10, 2026, the margin financing balance was approximately RMB 8.239 billion, accounting for approximately 6.04% of circulating market capitalization; margin funds recently showed net repayment, indicating that leveraged funds' short-term risk appetite has declined somewhat.

If turnover reaches more than RMB 4.5 billion for two consecutive trading days in the future, the turnover rate is明显高于 the recent normal level of approximately 3%, the closing price regains the RMB 86.8-88.0 resistance area, and main funds show at least one day of net inflow, this can be used as an observation signal of strengthened short-term fund absorption; if the share price instead breaks below RMB 83 on volume, it should be interpreted as selling pressure being released rather than active fund entry.

④ Points to Watch (Observation Ideas Only, Not Operational Instructions)

• Observe whether the RMB 83.0-84.0 support area can stabilize, and whether the area shows stabilization on shrinking volume or a breakdown on expanding volume.
• Observe whether the RMB 86.8-88.0 resistance area can be effectively recovered, and monitor whether MA5 and MA10 improve simultaneously.
• Observe whether turnover can continuously reach more than RMB 4.5 billion, and cross-check with whether main funds can shift from continuous net outflow to net inflow.
• The above are observation ideas, not operational instructions; the RMB 97-100 area, overlapping MA20 and the Bollinger middle band, is a stronger medium-term resistance observation area.

The above scenario simulation is based on the closing data of September 11, 2026 and historical prices and technical indicators. Short-term share prices will also be disturbed by multiple factors such as news, fund flows and the broader market environment. Technical indicators themselves have lag and limitations, do not guarantee actual future trends, and do not constitute buy or sell recommendations. Please make independent judgments based on the latest market information and bear investment risks yourself.

6. Industry Landscape and Competitor Analysis

6.1 Industry Status

The industry in which Sungrow Power Supply operates covers PV inverters, energy storage systems and new-energy power station development. The global PV inverter industry is relatively concentrated, with Chinese companies dominant in the global market; the energy storage industry simultaneously includes AC-side system integrators, DC-side battery system companies and comprehensive manufacturers extending from battery cells to system integration. Industry competition has gradually expanded from single hardware prices to efficiency, grid connection and grid-forming capabilities, safety, warranty, bankability, overseas certification, local service, software and project delivery capabilities.

6.2 Competitive Landscape

• PV inverter industry: Wood Mackenzie data show that global PV inverter shipments grew to 536GWac in 2023, and nine of the world's top ten manufacturers were headquartered in China; S&P Global data disclosed by the company state that Sungrow Power Supply ranked first globally in PV inverter shipments in 2023.
• Core competitive factors in the PV inverter industry include conversion efficiency and reliability, grid-connection adaptability, weak-grid operation capability, product certification, bankability, overseas channels, after-sales service, localized delivery, scale procurement and manufacturing costs.
• Industry risks include declining product prices, overseas trade barriers, inventory fluctuations and customer tender price pressure.
• Energy storage industry participants include AC-side system integrators such as Sungrow Power Supply, Tesla, Fluence, CRRC Zhuzhou Institute and HyperStrong, as well as companies extending from battery cells to system integration such as CATL, BYD, Hithium and Sunwoda.
• Different energy storage statistical agencies use different definitions of AC side, DC side, shipments and grid-connected capacity, and the related rankings should not be simply mixed.
• Key areas of competition in the energy storage industry include battery cell cost and supply stability, PCS efficiency and grid-forming capability, thermal management, fire protection and safety, system lifespan, warranty, bankability, overseas certification, local after-sales service, large project delivery, EMS and power trading capability.
• Sungrow Power Supply's relative advantages lie in PCS, power electronics, grid-forming energy storage, global project experience and PV-storage synergy; CATL, BYD and other companies are stronger in battery cell scale, cost and battery technology, and the two sides both cooperate upstream and downstream and compete in energy storage system integration and large energy storage projects.

6.3 Major Competitors

Compared with focused inverter companies, Sungrow Power Supply covers PV inverters, large-scale and commercial & industrial energy storage, wind power conversion, power station development and overseas project delivery, with broader business scope and stronger system integration capabilities; compared with battery cell companies such as CATL and BYD, its core advantages are not in battery cell resources and cost, but in PCS, power electronics control, grid-forming technology, grid-connection control, brand, channels and global delivery. The company's earnings quality depends to a relatively large extent on whether the share of energy storage and overseas inverters can continue to rise, rather than relying solely on expansion of power station development scale.

7. Risk Warnings

• Risk of declining profitability in energy storage systems: In H1 2026, energy storage system revenue fell 13.18% year on year, gross margin was 32.43%, down 7.49 percentage points year on year; although shipments were approximately 25GWh, up 28% year on year, shipment growth has not yet translated into revenue and profit growth, and if project price competition continues, energy storage scale expansion may be accompanied by margin pressure.
• Risk of dependence on key supply chains and cost volatility: The company's energy storage systems rely to a relatively large extent on external battery cell suppliers such as Sunwoda Electronics and REPT BATTERO, the raw material costs of PV and energy storage businesses are not fully broken out and disclosed, and the company does not have absolute bargaining power over battery cells, chips and key electrical components, so changes in supply prices may affect gross margin.
• Overseas operations and exchange rate risk: The overseas revenue share rose to 60.54% in 2025, H1 2026 exchange losses were approximately RMB 587 million, and financial expenses rose 239.94% year on year; overseas customer collections, local certification, after-sales delivery and exchange rate fluctuations may simultaneously affect revenue recognition, cash flow and profit.
• U.S. and other overseas policy risks: The company relies on global channels and overseas project delivery, and the industry faces overseas trade barrier risks; if relevant market policies, access rules or project investment conditions change, this may affect inverter and energy storage system orders, delivery pace and profitability.
• Project-based business collection and working capital risk: The company's customers include large power groups, EPC general contractors and overseas energy companies, and large energy storage projects may affect quarterly revenue recognition; as of the end of 2024, accounts receivable were approximately RMB 30.523 billion, approximately 39% of that year's revenue, and changes in overseas customer collections, contract assets and project settlements may still create cash flow and impairment pressure.
• Risk of fluctuation in the new-energy investment and development business: In H1 2026, new-energy investment and development revenue was approximately RMB 1.258 billion, down approximately 85% year on year; this business is significantly affected by power station transfer pace, financing conditions and project returns, and may cause obvious fluctuations in the company's revenue and profit across periods.
• Risk of new business realization: The 2025 annual report newly disclosed the AIDC power supply business, mainly providing solid-state transformer SST and power supply solutions, but it is still in the layout and expansion stage and cannot yet be regarded as a mature main business at the same scale as inverters and energy storage; if orders, customer validation or delivery progress fall short of expectations, related growth expectations may not materialize.
• Risk of share price and fund flow volatility: As of September 11, 2026, the share price was RMB 84.40, down approximately 59.6% from the 52-week high, MA5, MA10 and MA20 were in a bearish alignment, and main funds recorded a cumulative net outflow of approximately RMB 3.705 billion over the most recent 10 trading days; although RSI is in the oversold range, weak consolidation or further downside may still occur, and technical oversold does not equate to a trend reversal.

8. Conclusion and Outlook

Sungrow Power Supply's medium- to long-term growth foundation still lies in its comprehensive competitiveness in new-energy power electronics equipment, energy storage systems and overseas markets. In 2025, the overseas revenue share, energy storage revenue share and consolidated gross margin all improved, indicating that product mix upgrading and globalization had supported profitability; if energy storage gross margin gradually recovers, high-value overseas inverters continue to scale, and grid-forming energy storage, localized delivery and AIDC power supply orders are realized, the company's profit is expected to resume growth after 2027.

However, current performance is in an adjustment phase. In H1 2026, revenue, net profit attributable to shareholders and non-GAAP net profit all declined year on year, new-energy investment and development revenue contracted sharply, and the energy storage business showed divergence of "shipment growth, revenue and gross margin decline," while financial expenses rose 239.94% year on year and exchange losses were approximately RMB 587 million. Going forward, key focus areas should include energy storage system gross margin, overseas project delivery and collections, exchange rate impact, recognition pace of the investment and development business, and changes in inventory and contract assets.

Institutional earnings forecasts and target prices differ considerably, and the technical picture also shows that the share price remains in a weak bottom-seeking stage. Therefore, the company's future performance will depend on whether the profit decline can narrow with improvement in energy storage and overseas businesses, and whether new businesses such as AIDC can transform from the layout stage into verifiable orders and revenue; the related expectations carry considerable uncertainty of realization.

Data Sources

• PDF
• Sungrow Power Supply (300274)_Company Announcements_Sungrow Power Supply: 2025 Annual Report Sina Finance_Sina
• https://static.cninfo.com.cn/finalpage/2026-04-01/1225066678.PDF
• Sungrow Power Supply Co., Ltd. 2025 Annual Report Full Text
• https://cn.sungrowpower.com/storage/notice/iXCWPvAKdPMskX1nig8hGmY30qPWz5W19blFWDE9.pdf
• Company Announcements_Sungrow Power Supply: 2024 Annual Report Sina Finance_Sina
• Company Announcements_Sungrow Power Supply: Feasibility Analysis Report on the Use of Proceeds from the Overseas Issuance of Global Depositary Receipts and Additional Domestic Underlying A Shares (Revised Draft) Sina Finance_Sina
• Sungrow Power Supply Co., Ltd. 2024 Annual Report Full Text
• Sungrow Power Supply (300274)_Company Announcements_Sungrow Power Supply: 2025 Annual Report Summary Sina Finance_Sina
• Sungrow Holds the Global No. 1 Position in PV Inverter Shipments for 2023 - SUNGROW
• New Energy Storage Industry Reshapes the Energy Map: Market Polarization Under Low-Price Competition, Domestic Going-Global Presses Fast Forward_Guanyan Report Network
• [[Industry Deep Dive] Insight 2024: Competitive Landscape and Market Share of China's PV Inverter Industry (with Market Concentration, Enterprise Competitiveness Evaluation, etc.)_Industry Research Report - Qianzhan Network](https://www.qianzhan.com/analyst/detail/220/240626-0093fec8.html?utm_source=openai)
• Ginlong Technologies (300763)_Company Announcements_Ginlong Technologies: Tianjian Certified Public Accountants (Special General Partnership) Explanation on Financial Matters in the Review Inquiry Letter Regarding Ginlong Technologies Co., Ltd.'s Application to Issue Convertible Corporate Bonds to Unspecific Objects (Revised Draft) Sina Finance_Sina
• Energy Storage Market Landscape Accelerates Reshaping
• Sungrow Power Supply: H1 2026 Net Profit RMB 5.259 Billion, Plans RMB 6.4 per 10 Shares _ East Money
• Sungrow Power Supply (300274)_Company Announcements_Sungrow Power Supply: 2026 Interim Report Summary Sina Finance_Sina
• Sungrow Power Supply (300274) Earnings Forecast_F10_Tonghuashun Financial Services Network
• Listed Company Historical Performance Report - Sungrow Power Supply (300274)
• Sungrow Power Supply (300274) Earnings Forecast_F10_Tonghuashun Financial Services Network
• Guotai Haitong Securities - Sungrow Power Supply - 300274 - Technological Advantages Help the Company Continue to Transform, AI Development Brings a New Growth Curve - 260703 - Research Report - Company Survey - Hibor
• Sungrow Power Supply (300274) Earnings Forecast_F10_Tonghuashun Financial Services Network
• Sungrow Power Supply (300274): 2Q Energy Storage Gross Margin Continues to Improve Quarter on Quarter__Sina Finance_Sina
• Sungrow Power Supply (300274) Stock Analysis_Niucha Stock Diagnosis_Tonghuashun Finance
• Sungrow Power Supply (300274) Share Price, News, Quotes and Charts - Futu Niuniu
• Securities Code: 300274 Securities Abbreviation: Sungrow Power Supply Announcement No.: 2026-054
• Must-Read Stock Market: Sungrow Power Supply Newly Releases "Announcement on the First Repurchase of Company Shares"_Stock Channel_Stockstar
• Sungrow Power Supply (300274)_Company Announcements_Sungrow Power Supply: Announcement on Progress of Share Repurchase Sina Finance_Sina
• Sungrow Power Supply (300274)_Company Announcements_Sungrow Power Supply: Announcement on Public Solicitation of Voting Rights by China Securities Investor Services Center Co., Ltd. Sina Finance_Sina
• Sungrow Power Supply (300274) Latest Updates_F10_Tonghuashun Financial Services Network
• Sungrow Power Supply (300274)_Company Announcements_Sungrow Power Supply: Announcement on Shareholdings of the Top Ten Shareholders and Top Ten Unrestricted Shareholders in Relation to the Share Repurchase Matter Sina Finance_Sina
• Sungrow Power Supply_Individual Stock Calendar_East Money_Data Channel
• Sungrow Power Supply (300274)_Company Announcements_Sungrow Power Supply: 2026 Interim Report Sina Finance_Sina
• Sungrow Power Supply (300274) Stock Price Trend Technical Analysis_Future Forecast_Buy and Sell Operation Suggestions_Investing.com
• Sungrow Power Supply (300274.SZ) Stock Quotes_Historical Data_Main Funds - Big Wave Data
• Sungrow Power Supply (300274) Number of Shareholders_Shareholders - Lixinger
• https://static.cninfo.com.cn/finalpage/2026-08-05/1225459819.PDF

This report was automatically retrieved, compiled and generated by AI based on public channel information. Information is as of the close on September 11, 2026; September 12 and 13 are weekend market closures, and there may be timeliness differences. Specific data should be based on the company's formal announcements and authoritative data terminals. This report is only for information compilation and research reference and does not constitute any investment advice. Investors should make independent judgments and bear investment risks themselves.