Sungrow - A: FCC targets new Chinese inverter imports; maintain OW as negative already priced in

Research evidence excerpt

Sungrow - A: FCC targets new Chinese inverter imports; maintain OW as negative already priced in

J P M O R G A N Asia Pacific Equity Research

29 July 2026

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Sungrow - A Overweight

300274.SZ, 300274 CH

FCC targets new Chinese inverter imports; maintain Price (28 Jul 26):Rmb112.08

OW as negative already priced in Price Target (Dec-26):Rmb212.00

On July 28th, the FCC said it would block imports of new Chinese humanoid/ APAC Utilities & Renewables |

quadruped robots and connected power inverters. While this is not entirely new, the Sustainable Investing

scope (covering both inverter and ESS PCS products and both utility-scale and Alan Hon AC

off-grid applications) trends towards the bearish side. In-line with market (852) 2800-8573

expectations, the ban would affect new models, where previously FCC approved alan.hon@jpmorgan.com

models can still be sold to the U.S. We see negative earnings implications to be Daqi Jiao

more mid-term. Another key development will be the legal interpretation on (852) 2800-8595

“remote connectivity”. Per Sungrow, its products do not have wireless daqi.jiao@jpmorgan.com

J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

communication capability and are connected to its customer control unit via a Morgan Broking (Hong Kong) Limited

physical cable. Potentially, Sungrow could apply for a conditional approval to

secure FCC authorizations for new models through an individualized risk

assessment (via DoW/DHS) but the hurdles could be high, in our view.