Sungrow Power big drop commentary: FCC ban only affects new models; valuation remains attractive even in worst-case scenario

English summary

Event: The company's stock dropped sharply yesterday, mainly due to the US Federal Communications Commission (FCC) adding power inverters to the 'List of Regulated Equipment', with the ban covering photovoltaic and energy storage inverters. Earlier reports said the Trump administration was drafting an inverter import ban, and this is the formal implementation. Commentary: No impact on current selling models; even in the worst-case scenario, the company's valuation remains attractive. # Scope of impact: The ban adopts a 'grandfathering' approach, only restricting new models not yet approved for sale in the US. Therefore, the company's main PowerTitan 2.0 and 3.0 products are expected to continue selling. In terms of technology, the PowerTitan series uses AC/DC integrated design, ahead of competitors' split designs. The 3.0, launched last year, adopted SiC liquid-cooled PCS. Even if it continues using old models, it will maintain competitiveness for a considerable time. # Degree of impact: Based on the company's US shipments of ~10GWh for storage and ~7-8GW for PV inverters, the company's earnings exposure in the US is estimated at ~3-4 billion. ...