Sungrow Power (A): U.S. reportedly drafting ban on Chinese inverters; takeaways from mgmt call

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Sungrow Power (A): U.S. reportedly drafting ban on Chinese inverters; takeaways from mgmt call

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Sungrow Power (A)

U.S. reportedly drafting ban on Chinese

inverters; takeaways from mgmt call

Maintain Rating: BUY | PO: 186.00 CNY | Price: 136.92 CNY

U.S. reportedly drafting ban on Chinese inverters 02 July 2026

According to a Reuters article on June 30, the U.S. Federal Communications Commission Equity

(FCC) is reportedly drafting import restrictions that would apply to new foreign models

of inverters (mainly targeting Chinese inverters) due to cybersecurity concerns, and could Matty Zhao >> Research Analyst

be released as early as this year. The proposal is still in the drafting stage and remains Merrill Lynch (Hong Kong)

subject to revision or potential withdrawal. In addition, we estimate the U.S. business to +852matty.zhao@bofa.com3508 4001

account for c.15-20% of Sungrow’s NPAT in 2026. We maintain our Buy rating given Peter Wang >>

Sungrow’s leadership in the global energy storage system (ESS) market and expansion to Research Analyst

Merrill Lynch (Hong Kong)

AI data centers (AIDC). +852 3508 7185

peter.wang2@bofa.com

Takeaways from management call

Sungrow management held a call today to address markets concerns. Management

highlighted that the company's inverters do not have communication function and have Stock Data

already cleared inspections by relevant regulators. Management raised its Europe ESS

demand forecast to 60% CAGR over the next three years, up from the previous 50% Price 136.92 CNY

CAGR expectation. Meanwhile, Sungrow's Poland capacity is scheduled to commence Price Objective 186.00 CNY

operations in 1H27. For the U.S. business, safe harbor provisions under the One Big Date Established 1-Apr-2026