Sungrow Power Supply (300274.SZ): US New FCC Policy Unlikely to Have Much Impact Near Term But Likely More Long-Term from 2028E

Research evidence excerpt

Sungrow Power Supply (300274.SZ): US New FCC Policy Unlikely to Have Much Impact Near Term But Likely More Long-Term from 2028E

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31 Jul 2026 02:46:49 ET │ 13 pages

Sungrow Power Supply (300274.SZ)

US New FCC Policy Unlikely to Have Much Impact Near Term But Likely

More Long-Term from 2028E

CITI'S TAKE Buy

Price (30 Jul 26 15:00) Rmb103.710 We conducted an investor conference call with Citi's US renewable analyst

Target price Rmb185.000 Vikram Bagri assessing the impact of the US FCC issuing new regulations

prohibiting the import of new models of foreign-made photovoltaic (PV) Expected share price return 78.4%

inverters. The key takeaways from the call were that (i) while the new rules Expected dividend yield 1.7%

aim to drive domestic manufacturing and will have no immediate material Expected total return 80.1%

impact on existing products, they might pose challenges for the US Market Cap Rmb215,013M

market access of new products from Chinese companies; (ii) the core US US$31,830M

objective is to accelerate domestic inverter production capacity addition;

current domestic capacity is ~8 GW (only 16–18% of total demand); and

(iii) the US utility-scale market relies on imports for 91% of its supply

(primarily from Germany and China). Leading Chinese firms like Sungrow Global ESS & Solar Sector

could see market share drop in the US unless they establish joint ventures

Pierre Lau, CFAAC

or acquire local production capacity in the US. +852-2501-2716

pierre.lau@citi.com

Policy background - On 28 July, 2026,the US Federal Communications Commission

Vikram Bagri

(FCC) issued new regulations (link) prohibiting the import of new models of foreign- +1-212-816-4506

made photovoltaic (PV) inverters (including those from China); however, existing vikram.bagri@citi.com