Sungrow Power Supply (300274.SZ): Sungrow Hosting Investor Call Today Addressing Concern of Possible US Ban on Using Foreign Inverters

Research evidence excerpt

Sungrow Power Supply (300274.SZ): Sungrow Hosting Investor Call Today Addressing Concern of Possible US Ban on Using Foreign Inverters

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01 Jul 2026 06:54:47 ET │ 12 pages

Sungrow Power Supply (300274.SZ)

Sungrow Hosting Investor Call Today Addressing Concern of Possible

US Ban on Using Foreign Inverters

CITI’S TAKE Buy

Sungrow held an investor call this afternoon addressing investor concerns Catalyst Watch: Upside, expires 26-JUL-26

of possible US ban on using foreign inverters causing its share price -14% Price (01 Jul 26 15:00) Rmb136.920

today. On today’s call, the company probably has not addressed much Target price Rmb185.000

regarding ‘the possible US ban on using foreign inverters’ which is still

Expected share price being drafted by the Trump administration Reuters(June 30) hence details 35.1%

return are not available yet. In our view, the most important takeaways from the

call were that (i) ESS demand in Europe is strong and Sungrow has raised Expected dividend yield 1.3%

its ESS shipment volume to Europe to rise 60% yoy in 2026E, from 40- Expected total return 36.4%

50% yoy before; (ii) Sungrow will launch its first generation commercial Market Cap Rmb283,864M

solid state transformers (SST) on 9 July 2026 and will regard it as a US$41,934M

platform to use it at various value chains; and (iii) Sungrow’s Poland

production plant will commence operation in 1H27E. We have Buy rating

on Sungrow at 15.0x 2027E PER.

China ESS & Solar Sector

Strong ESS demand in Europe and the US – For Europe, the Intersolar exhibition held Pierre Lau, CFAAC

recently saw strong ESS demand with over 800 Chinese exhibitors. The integration of +852-2501-2716

solar and ESS storage is accelerating. While DC micro-grid projects account for less pierre.lau@citi.com