--- title: "Is there still something to watch for after the revaluation of Sungrow Power Supply?" type: "News" locale: "zh-CN" url: "https://longbridge.com/zh-CN/news/264638558.md" description: "Sungrow Power Supply's revenue in the third quarter increased by 20.83% year-on-year, and net profit surged by 57.04%. In the first three quarters, net profit reached 11.881 billion yuan, exceeding the total amount for the entire last year, with a market value surpassing 400 billion. The company has submitted an H-share listing application to the Hong Kong Stock Exchange, aiming for internationalization. Sungrow Power Supply holds a leading position in the photovoltaic inverter market and is expected to achieve a doubling of both revenue and net profit from 2022 to 2024, along with a reduction in raw material costs and an increase in profit margins" datetime: "2025-11-06T11:54:19.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/264638558.md) - [en](https://longbridge.com/en/news/264638558.md) - [zh-HK](https://longbridge.com/zh-HK/news/264638558.md) --- > 支持的语言: [English](https://longbridge.com/en/news/264638558.md) | [繁體中文](https://longbridge.com/zh-HK/news/264638558.md) # Is there still something to watch for after the revaluation of Sungrow Power Supply? Sungrow Power Supply's third quarterly report is explosive. In the third quarter, revenue increased by 20.83% year-on-year; net profit surged by 57.04%. The net profit for the first three quarters reached 11.881 billion yuan, surpassing the total for the entire last year, with a year-on-year growth of 56.34%. After the performance release, the company's market value easily exceeded 400 billion, indicating the market's high recognition of its development. To further internationalize, pursuing a Hong Kong IPO has become a "standard" move for leading companies in the photovoltaic energy storage industry. In October this year, Sungrow Power Supply officially submitted its H-share listing application to the Hong Kong Stock Exchange. In terms of market position, the company is not only a leader in photovoltaic inverters but also a leader in power electronics. The combination of energy storage and overseas expansion has gradually become the core growth line, and the layout of AIDC may open up higher growth limits. However, as one of the companies most affected by Sino-U.S. relations, Sungrow Power Supply has not established local production capacity in the United States; moreover, as one of the sectors with the highest investment returns this year, the large cake of energy storage is also being eyed by many companies. 1. Value Reassessment Sungrow Power Supply is a leader in inverters, consistently ranking among the top two in the photovoltaic inverter business alongside Huawei, with a significant gap from second-tier companies, resulting in a highly concentrated market. From 2022 to 2024, Sungrow Power Supply's revenue and net profit have both doubled over three years, maintaining a leading global market share in photovoltaic inverters. It is worth noting that in 2024, leading companies in the photovoltaic main industry chain are generally expected to incur losses of hundreds of millions, while Sungrow Power Supply has achieved profits in the billions. This is because the inverter market structure is concentrated, and the company has a significant scale advantage, with fierce market competition not substantially impacting its performance. Additionally, as a core component of photovoltaic power generation systems, crystalline silicon photovoltaic modules have seen a significant decline in average prices due to upstream production not needing to expand, leading to supply exceeding demand growth rates. This has instead reduced Sungrow Power Supply's raw material costs, resulting in an increase in profit margins for its photovoltaic business. More critically, the trend of "energy storage increasing while photovoltaic decreasing" in revenue structure has further propelled the company's counter-cyclical growth. In the first half of 2025, Sungrow Power Supply's energy storage revenue reached 17.8 billion yuan, surpassing inverters to become the company's primary growth engine, accounting for 41% of total revenue, with a gross margin of 39.9%, significantly higher than the overall level, and a shipment volume of 19.5 GWh, a year-on-year increase of 150% During the same period, the revenue proportion of the other two businesses with low gross margins has decreased to varying degrees. The revenue share of photovoltaic inverters and other power conversion equipment has dropped to 35%, while the proportion of new energy investment and development has decreased to 19.3%. The key factor that further allows Sungrow Power Supply to escape the dire situation of the domestic photovoltaic industry is that the company's main market is overseas. From January to June 2025, overseas revenue reached 25.4 billion yuan, accounting for 58.4%, a significant increase from 47.5% in 2022. Data from 2024 shows that its overseas business gross margin is 41.6%, nearly double that of its domestic business. With the optimization of product and regional revenue structure, the company's profitability is also showing a steady upward trend. Since the beginning of this year, Sungrow Power Supply's stock price has risen nearly 180%, with the timing of the price increase and the height of the rise already detached from the photovoltaic industry, entering an independent market trend. Behind this is the market's gradual recognition of its development prospects in the energy storage industry. II. Beware of Impairment Losses In the first half of this year, global energy storage installations reached 109 GWh, a year-on-year increase of 68%. During this period, Sungrow Power Supply has also continuously secured domestic and foreign orders, totaling over 42 GWh, which lays the foundation for the entire year's performance. At the same time as the Q3 performance release, the company also maintained a judgment of high-speed growth in energy storage demand for 2026, expecting global growth to remain at 40-50% next year. However, excluding energy storage, as of the first half of this year, the company's revenue from the photovoltaic industry still accounted for over 50%. Currently, the overall capacity utilization rate of the global photovoltaic module industry remains at a low level, with global capacity expected to exceed 1500 GW by 2025, while actual demand is about 600 GW, resulting in an overall industry utilization rate of less than 50% Although the photovoltaic industry has entered a structural repair phase, oversupply has caused prices to linger below the cost line for an extended period, resulting in the overall industry still not fully escaping the downward pressure of the cycle. This downward pressure does not pose a direct threat to Sungrow Power Supply, but it will harm its customers, thereby affecting the company's cash collection ability. From 2022 to the first half of 2025, the company's total accounts receivable and notes receivable were 15.297 billion yuan, 22.165 billion yuan, 28.826 billion yuan, and 29.423 billion yuan, respectively; in response, the company made impairment provisions of 1.371 billion yuan, 2.009 billion yuan, 2.891 billion yuan, and 3.112 billion yuan, respectively. These accounts receivable mainly come from project owners and EPC contractors in the new energy investment and development business, many of whom are local state-owned enterprises. The prosperity of the domestic photovoltaic industry deeply affects their payment ability. In September of this year, the domestic newly installed photovoltaic capacity was 9.66GW, a month-on-month increase of 31.25%, but a year-on-year decrease of 53.76%. In the same period last year, the release of policy dividends and concentrated market demand led to a high scale of newly installed photovoltaic capacity, but entering 2025, as policies gradually retreat and the market becomes more rational, the growth rate of newly installed capacity will naturally slow down. At the same time, fluctuations in raw material prices and supply chain bottlenecks have also suppressed industry investment willingness. With the disappearance of policy support, a significant decline in project returns, and a decrease in industry investment returns, the financing ability of enterprises has also weakened, further reducing customers' willingness to pay, forcing the company to recognize large impairment losses year after year. In addition, the continuous growth of inventory scale is another risk point for Sungrow Power Supply. As of June 30, 2025, Sungrow Power Supply's inventory reached 29.706 billion yuan, and the inventory turnover days increased to 181.3 days. The latest Q3 data shows that the inventory impairment loss and contract performance cost impairment loss amounted to 567 million yuan, a year-on-year increase of 646.30%. If market demand further weakens in the future, the scale of impairment for accounts receivable and inventory may expand, leading to a decrease in cash flow circulation efficiency, necessitating vigilance against the risk of "increased revenue without increased profit." However, as of Q3 this year, the company's net cash flow from operating activities reached 9.914 billion yuan, a substantial year-on-year increase of 1133.14%, indicating enhanced cash collection ability. During the same period, short-term bank loans amounted to 4.975 billion yuan, and non-current liabilities due within one year were 735 million yuan The monetary funds amount to 23.953 billion yuan, and the short-term debt coverage ratio has risen to 1.67 times. In the short term, the pressure on the company's asset-liability side has been temporarily relieved. If it can successfully list on the Hong Kong stock market, the dual financing channels will further alleviate the funding pressure. However, in the long term, Sungrow Power Supply's development in the energy storage market may also be tortuous. 1. Competitors are getting stronger Initially, Sungrow Power Supply's battery cells were highly dependent on CATL, but as CATL personally entered the energy storage system market, this core supplier ultimately became one of Sungrow Power Supply's market rivals, and this cooperative relationship was forced to come to an end. After the reduction in cooperation between the two parties, Sungrow Power Supply's battery cell suppliers were replaced by second-tier cell manufacturers such as Zhongxin Innovation, and the bargaining power in the supplier chain has also increased accordingly. From the cost structure perspective, batteries are the largest cost of energy storage systems, accounting for about 60%. In 2022, 2023, and 2024, as well as for the six months ending June 30, 2025, the procurement amounts of Sungrow Power Supply's top five suppliers accounted for 27.4%, 16.8%, 22.0%, and 28.3% of total procurement, respectively, indicating an increase in concentration. From the demand side, the average bidding price for energy storage systems in 2025 is still at a low level compared to recent years. However, during this period, Sungrow Power Supply still managed to maintain a high gross profit margin for energy storage systems. This to some extent illustrates how wise it was to replace CATL. However, due to the high dependence on external procurement for batteries, the rising trend of energy storage battery prices following industry prosperity may also lead to a slowdown in the company's future profit growth. Currently, CATL, which does not pose a competitive threat to the company, has a business model of vertical integration in the energy storage system market, meaning that the battery is self-controlled. The most significant feature of this advantage is the avoidance of cost fluctuations, which is currently lacking for Sungrow Power Supply. In addition, the company faces threats from strong competitors like Tesla, especially in its overseas markets, particularly the United States. According to Wood Mackenzie's 2025 global battery energy storage system integrators ranking, Sungrow Power Supply holds a steady second place with a 14% market share, almost indistinguishable from Tesla's 15% market share in first place. However, in the North American market, Tesla holds a monopolistic position with a 39% market share, while Sungrow Power Supply remains in second place, but its market share has decreased from 17% to 10% by 2024 In terms of revenue share, as of the first half of 2025, the company's revenue from the United States accounts for about 15%, making it its most important overseas market. However, according to the prospectus, Sungrow Power Supply has not established production capacity in the United States, and nearly all raw materials for its energy storage business in that market are exported from China. Although the tariff dispute has come to a pause, referencing the nature of the Trump administration, the uncertainty in the U.S. market continues to affect the company's business development. Amid escalating geopolitical tensions between China and the U.S. and increasing American trade protectionism, it is difficult for Chinese companies to challenge Tesla's dominant position in that market, forcing them to turn to Europe. A report by Wood Mackenzie shows that the market share of Chinese energy storage system integrators in Europe surged by 67% year-on-year, with four of the top ten participants in Europe headquartered in China. However, in Europe, BYD's integrated systems closely follow Tesla, ranking third. Moreover, BYD uses its own batteries, which may give it a cost advantage over Sungrow Power Supply in a fully competitive future market. The difficulty of penetrating the North American market further accelerates the timeline for Sungrow Power Supply to face strong domestic competitors in the global market. According to general institutional forecasts of a profit of 15 billion for the full year of 2025, as of the close on the 30th, this corresponds to a PE of 27 times. This valuation, in my opinion, is in a middling position; firstly, Sungrow Power Supply has performed well this year, essentially completing the value reassessment of energy storage replacing photovoltaics as the primary growth curve; secondly, the AIDC business has yet to receive actual orders, and if this part of the business sees real development, it may trigger a new round of increases. Conclusion Overall, Sungrow Power Supply is a trend stock that will grow in the medium to long term alongside global energy storage growth and achieve performance improvement. In the context of the times, the company's development opportunity lies in the global resonance phase of domestic and overseas energy storage, and as a global leader in energy storage, it is expected to fully benefit from the wave of the energy storage era. Additionally, AI demand also brings a new engine for the growth of energy storage demand, and the company has made some arrangements in this area. Once this part of the business sees actual development, it may further boost the stock price. However, there are also threats in the development process. As a comprehensive photovoltaic and energy storage enterprise, the company's asset side is still at risk of increasing impairment losses due to the overall downturn in the photovoltaic industry; its technological competitive barriers are also not high enough compared to CATL and BYD. More importantly, as one of the companies most affected by China-U.S. relations, the development of Sungrow Power Supply in the U.S. market still faces uncertainty ### 相关股票 - [Sungrow Power Supply (300274.CN)](https://longbridge.com/zh-CN/quote/300274.CN.md) ## 相关资讯与研究 - [12:08 ETSicherheit bei der Energiespeicherung erhöht: Sungrow und TÜV Rheinland stellen Whitepaper vor](https://longbridge.com/zh-CN/news/280883483.md) - [03:50 ETSungrow's SHT Hybrid Inverter Wins World's First VDE-AR-N 4105:2026 Certification](https://longbridge.com/zh-CN/news/280586257.md) - [22:45 ETSungrow Secures Top Rank Again in BloombergNEF's 2025 Inverter Bankability Survey](https://longbridge.com/zh-CN/news/277719316.md) - [20:52 ETMayor seguridad en el almacenamiento de energía: Sungrow y TÜV Rheinland presentan su informe técnico](https://longbridge.com/zh-CN/news/280706549.md) - [LIVE MARKETS-Mideast oil shock could charge up APAC alternative energy plays, says JPM](https://longbridge.com/zh-CN/news/279632956.md)