Equity Research: Sungrow Power Supply (300274.SZ)

Date: April 2, 2025
Sector: Renewable Energy / Electrical Equipment
Analyst: Institutional Research Team
Rating: BUY
Current Price: CNY [Market Price Not Specified in Source]
Target Price: Implied Upside based on 2026E PE of 18.56x

Executive Summary

Sungrow Power Supply (“Sungrow” or the “Company”) reported its full-year 2025 financial results on March 31, 2025. While fourth-quarter performance exhibited seasonal volatility and year-on-year declines, the full-year trajectory underscores robust fundamental growth, driven primarily by the explosive expansion of its energy storage systems (ESS) business and sustained leadership in global inverter markets.

For the fiscal year 2025, Sungrow achieved total revenue of CNY 89.18 billion, representing a year-over-year (YoY) increase of 14.55%. Net profit attributable to shareholders of the parent company reached CNY 13.46 billion, up 21.97% YoY. Adjusted for share-based payments and incentive funds, the core net profit stood at CNY 14.78 billion, highlighting strong underlying earnings power. A standout feature of the report is the significant improvement in cash flow quality; net operating cash flow surged 40.18% YoY to CNY 16.92 billion, reflecting enhanced collection efficiency and working capital management.

Although Q4 2025 revenue and net profit declined by 18.37% and 54.02% respectively due to seasonal factors and industry adjustments in new energy investment development, the long-term growth logic remains intact. The Company’s strategic pivot towards high-margin energy storage has successfully offset headwinds in the domestic photovoltaic (PV) market. With global ESS shipments growing by 53.57% and gross margins expanding to 31.83%, Sungrow continues to demonstrate superior profitability compared to industry peers.

Looking ahead, we maintain our BUY rating. We project net profits of CNY 16.84 billion, CNY 20.35 billion, and CNY 23.66 billion for 2026, 2027, and 2028, respectively. This translates to compound annual growth rates that justify the current valuation multiples. The recent geopolitical tensions in the Middle East, while creating short-term uncertainty, are accelerating the global consensus on energy independence, thereby reinforcing the long-term demand for renewable energy and storage solutions. We view Sungrow as a primary beneficiary of this structural shift, particularly in overseas markets where margin profiles are more favorable.

Key Takeaways

1. Financial Performance: Resilient Full-Year Growth Amidst Q4 Volatility

The 2025 annual report reveals a company that has successfully navigated a complex macroeconomic environment to deliver double-digit growth in both top-line and bottom-line metrics. However, investors should note the divergence between full-year strength and fourth-quarter weakness, which requires careful contextual analysis.

Full-Year 2025 Highlights

• Revenue Growth: Total revenue reached CNY 89.18 billion, up 14.55% from CNY 77.86 billion in 2024. This growth was broad-based but heavily skewed towards the energy storage segment.
• Profitability Expansion: Net profit attributable to shareholders hit CNY 13.46 billion, a 21.97% increase. The faster growth in net profit compared to revenue indicates operating leverage and improved product mix.
• Core Earnings Quality: When excluding non-recurring items such as share-based payments and specific incentive funds, the adjusted net profit was CNY 14.78 billion. This metric provides a clearer view of the Company’s operational earning power, suggesting that statutory net profit slightly understates the true economic performance due to accounting treatments of employee incentives.
• Margin Improvement: The overall gross margin expanded by 1.89 percentage points (pct) to 31.83%. The net profit margin attributable to shareholders improved by 0.70 pct to 15.17%. This margin expansion is critical in an industry often characterized by price wars, demonstrating Sungrow’s pricing power and cost control capabilities.

Fourth Quarter 2025 Analysis

• Revenue Decline: Q4 2025 revenue was CNY 22.78 billion, down 18.37% YoY.
• Profit Drop: Q4 2025 net profit attributable to shareholders was CNY 1.58 billion, down 54.02% YoY.
• Contextualizing the Decline: The sharp drop in Q4 profits is attributed to several factors:
  1. Seasonality & Project Recognition: The new energy investment development sector faced delays in grid connection and revenue recognition as the industry adjusted to full market-based electricity trading mechanisms.
  2. Expense Accruals: There was a notable increase in expense ratios in Q4. Sales, administrative, and R&D expense ratios increased by 2.17 pct, 0.55 pct, and 1.72 pct respectively YoY in Q4. This suggests front-loading of strategic investments and year-end accruals.
  3. Base Effect: The comparison base from Q4 2024 may have included one-off gains or higher volume recognitions that were not repeated in 2025.

Despite the Q4 softness, the full-year trend confirms that Sungrow’s core businesses (Inverters and Storage) remain healthy. The decline is largely isolated to the project development arm and seasonal timing differences, rather than a structural deterioration in demand for its core hardware products.

2. Segment Analysis: Storage as the Primary Growth Engine

Sungrow’s business portfolio is diversified across three main pillars: PV Inverters & Power Electronics, Energy Storage Systems, and New Energy Investment Development. The dynamics within each segment tell a story of strategic transition from pure PV reliance to a balanced PV-Storage powerhouse.

A. Energy Storage Systems (ESS): The High-Growth Driver

The ESS segment has emerged as the most significant contributor to Sungrow’s growth narrative in 2025.

• Revenue Surge: ESS revenue totaled CNY 37.29 billion, skyrocketing by 49.39% YoY. This segment now accounts for approximately 41.8% of total revenue, up from roughly 33% in the prior year, indicating a successful diversification strategy.
• Shipment Volume: Global ESS shipments reached 43 GWh, a 53.57% increase YoY. This volume growth outpaced revenue growth slightly, implying stable to slightly improving average selling prices (ASPs) or a favorable mix of larger utility-scale projects.
• Market Drivers: The growth is underpinned by robust global demand for grid stability solutions. As renewable penetration increases in Europe, North America, and emerging markets, the need for long-duration and high-efficiency storage becomes paramount. Sungrow’s integrated liquid-cooled storage solutions have gained significant traction due to their safety profile and lifecycle cost advantages.
• Profitability Contribution: Given the overall gross margin expansion to 31.83%, and the known higher margin profile of overseas storage projects compared to domestic PV, it is evident that the ESS segment is accretive to overall profitability. The Company’s ability to scale storage without compromising margins demonstrates strong supply chain management and technological moats.

B. PV Inverters & Power Electronics: Stable Cash Cow

While the growth rate has moderated compared to the storage boom, the inverter business remains a foundational pillar of Sungrow’s operations, providing stable cash flows and global brand presence.

• Revenue Performance: Revenue from PV inverters and other power electronic conversion equipment was CNY 31.14 billion, growing by a modest 6.9% YoY.
• Shipment Dynamics: Global PV inverter shipments totaled 143 GW. This represents a slight year-on-year decline in volume.
• Regional Dissection: The slight decline in shipments is primarily attributed to a slowdown in the domestic Chinese market. The Chinese PV installation market has entered a phase of consolidation and adjustment following years of hyper-growth. Grid curtailment issues and policy shifts towards market-based electricity pricing have tempered installer sentiment.
• International Resilience: Conversely, international markets likely remained resilient or grew, offsetting the domestic drag. Sungrow’s strong presence in Europe, the Middle East, and Asia-Pacific allows it to mitigate single-market risks. The stability of this segment, despite domestic headwinds, highlights the Company’s global diversification benefits.
• Strategic Role: While growth is slower, the inverter business serves as a "trojan horse" for storage sales. Customers who trust Sungrow for inverters are more likely to adopt its storage solutions, creating a powerful cross-selling synergy.

C. New Energy Investment Development: Cyclical Adjustment

This segment involves the development, construction, and operation of PV and wind power plants. It is inherently more cyclical and policy-dependent than the equipment manufacturing arms.

• Revenue Contraction: Revenue fell by 21.16% YoY to CNY 16.56 billion.
• Root Cause: The decline is driven by the structural change in China’s power market. The transition to full market-based trading for new energy grid connections has introduced volatility in revenue projections for developers. Investors and developers are currently in a "deep adjustment period," reassessing project economics in light of potential price fluctuations in the spot electricity market.
• Impact on Overall Results: This segment’s contraction explains a significant portion of the Q4 revenue miss. However, from a strategic standpoint, Sungrow is likely shifting focus from heavy asset ownership (which consumes capital) to equipment sales (which generates higher ROE). Therefore, a deliberate slowdown or stabilization in this segment may be viewed positively by investors concerned about capital efficiency and balance sheet health.

3. Cash Flow & Balance Sheet: Significant Quality Improvement

One of the most compelling aspects of the 2025 annual report is the dramatic improvement in cash flow metrics. For capital-intensive manufacturing firms, cash flow is often a better indicator of health than accounting profit.

• Operating Cash Flow (OCF): Net operating cash flow reached CNY 16.92 billion, a remarkable 40.18% increase YoY (from CNY 12.07 billion in 2024).
  • Interpretation: This surge indicates that Sungrow has significantly improved its working capital cycle. The Company is collecting receivables faster and/or managing payables more effectively. It also suggests that the quality of earnings is high; profits are being converted into actual cash rather than remaining trapped in accounts receivable or inventory.
• Cash Position: The net increase in cash and cash equivalents was CNY 4.28 billion, up 195.18% YoY.
  • Balance Sheet Strength: Ending cash and cash equivalents stood at CNY 22.83 billion (up from CNY 19.80 billion in 2024). This robust liquidity position provides Sungrow with ample dry powder for:
    1. R&D Investment: Sustaining its technological lead in next-gen inverters and storage.
    2. Global Expansion: Funding local manufacturing or sales networks in key overseas markets.
    3. Shareholder Returns: Potential for increased dividends or buybacks.
    4. Risk Buffer: Protecting against supply chain shocks or geopolitical disruptions.
• Working Capital Metrics:
  • Accounts Receivable Turnover Days: Improved to 104.6 days in 2025 from 114.2 days in 2024. This 10-day improvement is significant in an industry where payment terms can be lengthy.
  • Inventory Turnover Days: Remained relatively stable at 169.0 days (vs. 168.9 days in 2024). Given the growth in storage shipments (which may have longer production cycles), maintaining stable inventory turnover is a positive sign of demand visibility.
  • Accounts Payable Turnover Days: Increased to 126.2 days from 122.2 days. This suggests Sungrow is leveraging its scale to negotiate better payment terms with suppliers, further enhancing its cash conversion cycle.

4. Profitability & Expense Structure

Sungrow’s ability to expand margins while investing heavily in R&D is a testament to its operational excellence.

• Gross Margin Trend:

  • 2023: 30.4%
  • 2024: 29.9%
  • 2025: 31.83% (+1.89 pct YoY)
  • Driver: The margin expansion is primarily driven by the higher proportion of high-margin overseas sales and the strong performance of the ESS segment. Additionally, raw material costs (such as lithium carbonate for batteries and semiconductor components) have stabilized or decreased, contributing to cost relief.

• Expense Ratios (Full Year 2025 vs 2024):

  • Sales Expenses: 5.42% of revenue (+0.59 pct). The increase reflects intensified marketing efforts in overseas markets and the expansion of the global service network.
  • Administrative Expenses: 1.92% of revenue (+0.38 pct). Controlled growth, indicating efficient corporate overhead management.
  • R&D Expenses: 4.68% of revenue (+0.62 pct). Absolute R&D spend increased to CNY 4.18 billion (from CNY 3.16 billion in 2024).
    • Significance: In the technology-driven energy sector, R&D is not just an expense but an investment in future competitiveness. Sungrow’s continued high R&D intensity ensures it stays ahead in efficiency ratings, grid-forming capabilities, and safety features.

• Q4 Expense Spike:

  • As noted earlier, Q4 saw a disproportionate rise in expense ratios (Sales +2.17 pct, R&D +1.72 pct). This is likely due to year-end bonuses, strategic marketing pushes for the upcoming year, and the recognition of certain annual R&D milestones. Investors should normalize this when modeling forward quarters, expecting ratios to revert to the full-year averages in 2026.

5. Macro & Geopolitical Context: The Energy Independence Catalyst

The report highlights a critical macro driver: Geopolitical instability accelerating energy transition.

• Middle East Tensions: Recent conflicts involving Iran and broader Middle East instability have led to supply concerns for oil and natural gas.
• European Gas Prices: The European TTF natural gas benchmark price surged nearly 90% in a single month.
• Strategic Implication: While volatile energy prices create short-term economic headwinds, they reinforce the long-term strategic imperative for Energy Independence.
  • Europe: Accelerating rollout of renewables and storage to reduce reliance on imported fossil fuels.
  • Global South: Countries are increasingly viewing solar+storage as the cheapest and most secure path to electrification.
• Outlook for 2026: We anticipate that the "security premium" associated with renewable energy will sustain high demand for Sungrow’s products, particularly in overseas markets. The Company is well-positioned to capture this demand given its established brand and local presence in key regions like Europe and the Middle East.

Risks / Headwinds

While the outlook is positive, institutional investors must weigh the following risks inherent to Sungrow’s business model and the broader industry landscape.

1. Product Iteration & R&D Pressure

• Risk: The power electronics and storage industries are characterized by rapid technological obsolescence. Competitors are constantly launching new inverter topologies and battery chemistries (e.g., Sodium-ion, Solid-state).
• Impact: If Sungrow fails to keep pace with efficiency improvements or cost reductions, it could lose market share or face margin compression. The increasing R&D expense ratio (4.68%) is necessary but does not guarantee successful commercialization.
• Mitigation: Sungrow’s strong cash flow allows for sustained R&D investment. Its large installed base provides valuable data for iterative improvements.

2. Global Trade Policy & Protectionism

• Risk: As a Chinese exporter with significant overseas revenue, Sungrow is vulnerable to trade barriers.
  • US: Potential tariffs or exclusion from IRA (Inflation Reduction Act) benefits if supply chain localization requirements are not met.
  • EU: Anti-subsidy investigations or carbon border adjustment mechanisms (CBAM) could increase costs.
  • India/Other Markets: Local content requirements (PLI schemes) may force localized manufacturing, increasing capital expenditure.
• Impact: Tariffs directly erode margins. Non-tariff barriers can delay market entry or increase compliance costs.
• Mitigation: Sungrow has been expanding its global manufacturing footprint (e.g., factories in India, potentially elsewhere) to localize supply chains and mitigate tariff risks.

3. Geopolitical Volatility & Supply Chain Stability

• Risk: Escalating conflicts (e.g., Middle East, Ukraine) can disrupt shipping lanes (Red Sea crisis) and increase freight costs. They can also lead to sanctions or counter-sanctions that affect component sourcing or payment settlements.
• Impact: Higher logistics costs reduce net margins. Supply chain disruptions can lead to delivery delays, triggering penalty clauses in contracts.
• Mitigation: Diversified supplier base and strategic inventory management. Strong balance sheet allows absorption of short-term freight spikes.

4. Domestic Market Saturation & Policy Shifts

• Risk: The Chinese PV market, while large, is facing grid congestion and policy shifts towards market-based electricity pricing. This reduces the certainty of returns for downstream developers, which can feedback into reduced equipment orders or pressure on equipment prices.
• Impact: Slower growth in the domestic inverter segment. Potential price wars in the domestic storage market as competitors fight for shrinking margins.
• Mitigation: Sungrow’s heavy reliance on overseas markets (where margins are higher) insulates it from domestic price competition. The shift to storage helps diversify away from pure PV dependency.

5. Exchange Rate Fluctuations

• Risk: A significant portion of Sungrow’s revenue is denominated in foreign currencies (USD, EUR, etc.), while a large part of its cost base is in CNY.
• Impact: Appreciation of the CNY can reduce reported revenue and margins when translated back to RMB. Conversely, depreciation boosts reported earnings but may increase the cost of imported components.
• Mitigation: The Company likely employs hedging strategies, though these are not always fully effective against large, sustained trends.

Rating / Sector Outlook

Sector Outlook: Overweight on Storage, Neutral on PV Hardware

The broader renewable energy equipment sector is undergoing a bifurcation.
1. PV Modules/Inverters: Facing intense competition and margin pressure, especially in China. Growth is slowing as the initial installation boom matures.
2. Energy Storage: Entering a high-growth phase driven by grid modernization needs, policy mandates (e.g., EU Battery Regulation, US ITC extensions), and the economic viability of arbitrage.

Sungrow is uniquely positioned at the intersection of these two trends. It is transitioning from a "PV Inverter Leader" to a "Integrated Energy Storage Solution Provider." This transition commands a higher valuation multiple than pure-play PV manufacturers.

Valuation Analysis

We maintain a BUY rating based on the following valuation framework:

Note: P/E and P/B ratios for 2025 are calculated based on the closing price implied by the report's context. The 2024 P/E of 13.87x suggests the stock was undervalued relative to its growth at that time. The 2025 P/E of 26.34x reflects a re-rating as the market recognized the storage growth story.

Valuation Justification:
* Forward P/E of 18.56x (2026E): For a company growing net profits at >25% with a dominant global market share and high ROE (>25%), a P/E of ~18-20x is reasonable. It offers a discount to high-growth tech stocks but a premium to slow-growth industrial manufacturers.
* PEG Ratio: With a 2026E growth rate of 25.11% and a P/E of 18.56x, the PEG ratio is approximately 0.74. A PEG below 1.0 typically indicates the stock is undervalued relative to its growth potential.
* ROE Sustainability: The projected ROE remains above 23% through 2028. This high return on equity supports the higher P/B multiple (5.00x in 2026E) compared to traditional manufacturing firms.

Consensus Analyst View

According to market data cited in the report:
* Buy Ratings: 74 analysts in the last 6 months.
* Overweight/Accumulate: 0 analysts.
* Hold/Neutral: 0 analysts.
* Sell/Underweight: 0 analysts.
* Average Score: 1.00 (Strong Buy).

This unanimous bullish sentiment from the sell-side community reinforces our conviction, although it also suggests that any negative surprise could lead to significant multiple contraction due to crowded positioning.

Investment View

Core Investment Logic

1. Structural Shift to High-Margin Storage:
Sungrow is no longer just an inverter company. The ESS segment, now contributing ~42% of revenue and growing at ~50%, is the primary value driver. Storage systems generally command higher barriers to entry (software integration, safety certification, grid compatibility) than standard inverters, leading to stickier customer relationships and better margins. As the global grid becomes more unstable due to renewable intermittency, the "option value" of storage increases. Sungrow is the global leader in this space.

2. Global Diversification as a Risk Mitigator:
Unlike peers heavily reliant on the Chinese domestic market, Sungrow derives a substantial portion of its revenue from overseas. This geographic diversification protects it from domestic policy shocks (like grid curtailment in China) and allows it to capture higher margins in Europe, the Middle East, and Australia. The recent geopolitical tensions, paradoxically, benefit Sungrow by accelerating overseas demand for energy security solutions.

3. Superior Cash Flow Generation:
The 40% jump in operating cash flow to CNY 16.9 billion is a game-changer. It proves that Sungrow’s growth is high-quality and sustainable. This cash pile allows the Company to:
* Self-fund capacity expansion without dilutive equity raises.
* Invest aggressively in R&D to stay ahead of competitors.
* Weather supply chain storms or trade disputes.
* Return capital to shareholders via dividends (current yield is modest but growing).

4. Operational Excellence & Scale:
Sungrow’s ability to expand gross margins to 31.83% while increasing R&D spend demonstrates exceptional operational leverage. Its scale allows it to negotiate better terms with suppliers (as seen in the extended payable days) and distribute fixed costs over a larger revenue base.

Strategic Recommendations for Institutional Investors

For Long-Term Portfolios:
* Accumulate on Weakness: Any market correction driven by short-term Q4 noise or broader sector rotation should be viewed as a buying opportunity. The long-term trend of energy transition is intact, and Sungrow is a top-tier beneficiary.
* Monitor Overseas Margins: Keep a close watch on gross margins in the European and North American segments. Any sign of margin erosion due to local competition or tariff impacts should be a key trigger for re-evaluation.

For Tactical Traders:
* Catalyst Watch: Look for announcements regarding large-scale storage contracts in the Middle East or Europe. Positive news flow in these regions tends to drive short-term price appreciation.
* Quarterly Normalization: Expect Q1 and Q2 2026 to show strong YoY growth as the low base of Q4 2025 comparisons kicks in. This could lead to a positive earnings surprise in the first half of 2026.

Conclusion

Sungrow Power Supply has delivered a robust 2025 performance, characterized by strong revenue growth, expanding margins, and exceptional cash flow generation. The temporary setback in Q4 is overshadowed by the structural success of its energy storage business and its resilient global footprint.

We believe the market is underappreciating the durability of Sungrow’s competitive moat in the storage sector and the quality of its earnings. With a forward P/E of 18.56x for 2026 and projected earnings growth of over 25%, the stock offers an attractive risk-reward profile.

Final Recommendation: BUY
Target Horizon: 12-18 Months
Key Monitorables: Overseas ESS shipment volumes, Gross Margin trends in Q1 2026, and developments in US/EU trade policy.

Appendix: Detailed Financial Forecasts & Analysis

1. Income Statement Projection Logic

Our forecasts for 2026-2028 are built on the following assumptions:

• Revenue Growth:

  • 2026E (33.43% Growth): We anticipate a rebound in domestic PV installations as grid issues are resolved, combined with continued strong growth in overseas storage. The low base of Q4 2025 also contributes to high YoY growth in H1 2026.
  • 2027E (18.36% Growth) & 2028E (14.23% Growth): Growth normalizes as the base effect fades and the market matures. Storage growth remains double-digit but slows from the explosive 50%+ rates seen in 2025.

• Cost of Goods Sold (COGS):

  • We assume COGS as a percentage of revenue stabilizes around 69-70%. This implies a gross margin of 30-31%. While raw material costs may fluctuate, we expect efficiency gains and product mix improvements (higher storage share) to offset any input cost inflation.

• Operating Expenses:

  • Sales Expenses: Projected to remain around 5.5% of revenue. As the brand becomes more established globally, sales efficiency should improve, preventing linear growth in sales spend.
  • R&D Expenses: Maintained at 4.5% of revenue. This is crucial for sustaining innovation. Absolute R&D spend will grow in line with revenue.
  • Administrative Expenses: Expected to decrease slightly as a percentage of revenue (1.8%) due to economies of scale.

• Tax Rate:

  • We assume an effective tax rate of 15.0%, consistent with the Company’s historical utilization of high-tech enterprise tax preferences in China and favorable tax regimes in certain overseas jurisdictions.

2. Balance Sheet Health Check

• Asset Structure:

  • Current Assets: Represent ~80% of total assets, indicating a light-asset model relative to heavy manufacturing peers. This enhances flexibility.
  • Cash & Equivalents: Projected to grow to CNY 49.26 billion by 2028. This massive cash hoard will likely lead to increased shareholder returns or M&A activity.
  • Receivables: While absolute receivables grow with revenue, the days sales outstanding (DSO) is projected to improve to 75-80 days, reflecting continued strong collection discipline.

• Liability Management:

  • Debt Levels: Short-term borrowings are projected to decline significantly (from CNY 2.93 billion in 2025 to near zero by 2028). Long-term debt remains stable.
  • Net Debt Position: The Company is in a net cash positive position. Net debt-to-equity is negative (-55.93% in 2025), meaning cash exceeds total debt. This is a rare and highly desirable trait in capital-intensive industries, providing immense financial flexibility.

• Equity Growth:

  • Retained earnings are projected to grow substantially, driving book value per share from CNY 22.48 in 2025 to CNY 48.26 in 2028. This organic growth in book value supports the stock price even if valuation multiples contract slightly.

3. Cash Flow Forecast Nuances

• Operating Cash Flow Volatility:

  • Our model predicts OCF of CNY 7.39 billion in 2026, lower than 2025’s CNY 16.92 billion. This is not a sign of deterioration but rather a normalization. 2025 saw a one-time boost from aggressive collections. In 2026, as revenue grows by 33%, working capital requirements (inventory and receivables) will naturally increase, consuming some cash.
  • However, OCF rebounds strongly to CNY 16.54 billion in 2027 and CNY 21.95 billion in 2028 as the business scales and working capital cycles stabilize.

• Capital Expenditure (CapEx):

  • CapEx is projected to remain moderate (~CNY 2-3 billion/year). Sungrow does not require massive factory expansions compared to battery cell manufacturers, as it focuses on system integration and power electronics. This low CapEx requirement contributes to high Free Cash Flow (FCF).

• Financing Activities:

  • The Company is projected to be a net repayer of debt and a payer of dividends. No significant equity issuance is expected, avoiding dilution for existing shareholders.

4. Sensitivity Analysis

To provide a range of outcomes, we consider the following scenarios:

Even in the Bear Case, the P/E remains below 22x for a company with historical growth rates of >20%, suggesting limited downside risk.

Final Remarks

Sungrow Power Supply stands out as a high-quality compounder in the renewable energy sector. Its 2025 annual report confirms that the Company has successfully navigated the transition from a PV-centric business to a diversified energy technology leader. The combination of high growth (25%+ EPS CAGR), high profitability (31.8% Gross Margin), and high cash flow quality (CNY 16.9B OCF) creates a compelling investment thesis.

While short-term volatility in Q4 and geopolitical headlines may cause price fluctuations, the long-term fundamentals are stronger than ever. The global imperative for energy independence and grid stability ensures a multi-year tailwind for Sungrow’s core products.

We advise institutional investors to maintain or initiate positions in Sungrow, utilizing any market dips as entry points. The Company’s robust balance sheet and market-leading position provide a solid foundation for long-term value creation.

Disclaimer:
This report is based on information available as of March 31, 2025, including Sungrow Power Supply’s 2025 Annual Report and analysis by Guojin Securities. The views expressed herein are for informational purposes only and do not constitute investment advice. Investors should conduct their own due diligence and consult with financial advisors before making investment decisions. Past performance is not indicative of future results. All financial projections are estimates and subject to change based on market conditions.