2Q26 preview: expect modest 2Q growth; deliveries concentrated in 2H to drive re-rating

研报英文原文证据摘录

2Q26 preview: expect modest 2Q growth; deliveries concentrated in 2H to drive re-rating

Forecast returns

Forecast price appreciation 10.4%

Forecast dividend yield 1.7%

Forecast stock return 12.1%

Market return assumption 6.8%

Forecast excess return 5.3%

Company Description

Established in 1993, Kstar is a leading uninterruptible power supply (UPS) manufacturer in

China. With its technological background, the company has expanded into inverters, energy

storage systems and EV chargers. It was listed on the Shenzhen Stock Exchange in 2010. For

data centres, the company has partnered with global UPS brands via an ODM model for

overseas market expansion, while mainly leveraging its own brand for domestic sales of UPS.

For battery energy storage systems, 50% of Kstar's business is done via an ODM model for a

major overseas client.

Valuation Method and Risk Statement

Our price target for Kstar is based on a DCF methodology. Downside risks include:1) slower-

than-expected IDC capacity expansion, which drags the growth of overall data center

product; 2) lower-than-expected entrance to overseas hyperscaler supply chain due to long

customer verification cycle; 3) lower-than-expected shipments recovery of BESS product; and

4) new entrants taking Kstar's market share. Upside risks include: 1) faster-than-expected IDC

capacity expansion, which accelerate the growth of overall data center product; 2) higher-

than-expected entrance to overseas hyperscaler supply chain due to shortened customer

verification cycle; 3) higher-than-expected overseas shipment of BESS products; 4) share gains

due to Kstar's strong relationships with global leading UPS brands.

First Read: Kstar 25 June 2026 abc 2