Last year's net profit attributable to the parent increased by nearly 22% but still fell short of institutional expectations. Is Sungrow Power Supply "filling in the gaps" with energy storage?

Questioning AI · Energy Storage Business Growth Near 50%: How Does It Support Sungrow Power’s Overall Performance?

Daily Economic News Reporter: Cai Ding Daily Economic Editor: Du Yu

Sungrow Power (SZ300274) released its 2025 annual report after market close on March 31. The company achieved approximately 89.18B yuan in revenue in 2025, a year-over-year increase of 14.55%; net profit attributable to shareholders of the listed company was about 13.46B yuan, up 21.97%; non-recurring net profit was approximately 12.83B yuan, up 19.98%; basic earnings per share were 6.55 yuan, an increase of 23.12%. The company plans to distribute a cash dividend of 6.9 yuan (including tax) per 10 shares to all shareholders, based on the share capital after excluding repurchased shares in the dedicated securities account.

From a vertical perspective, this is the first time Sungrow Power’s revenue and net profit attributable to the parent company in a single fiscal year have surpassed 80 billion yuan and 13 billion yuan, respectively. Quarterly-wise, in Q4 2025, Sungrow Power achieved revenue of 22.78B yuan, down 18.37% year-over-year and down 0.38% quarter-over-quarter; net profit attributable to the parent was 1.58 billion yuan, down 54.02% year-over-year and 61.9% quarter-over-quarter.

Notably, on April 1, Sungrow Power’s stock closed at 134.45 yuan per share, a decline of 10.82%.

Energy Storage Business Revenue Near 50% Growth

According to data compiled from Wind Financial Terminal, 22 institutions’ consensus forecasts for Sungrow Power’s 2025 revenue and net profit attributable to the parent are approximately 97.17B yuan and 15.33B yuan, respectively. Therefore, based on the disclosed performance, the actual figures both fell short of analyst consensus expectations, with revenue and net profit being 8.22% and 12.21% lower than the consensus estimates, and both below the forecasts of all 22 institutions.

The annual report shows that Sungrow Power’s gross margin in 2025 was 31.83%, an increase of 1.89 percentage points year-over-year, mainly due to brand premium, product innovation, and scale effects. Meanwhile, net cash flow from operating activities reached 16.92B yuan, up 40.18% year-over-year, exceeding the growth rate of net profit attributable to the parent.

In 2025, despite a 14.55% revenue increase, Sungrow Power’s sales expenses grew by 28.49% to 4.83B yuan; management expenses increased by 42.79% to 1.72B yuan.

The Daily Economic News reporter (hereafter referred to as the reporter) noted that Sungrow Power’s energy storage system business performed remarkably well in 2025, with revenue approximately 37.29B yuan, a year-over-year increase of 49.39%, accounting for 41.81% of total revenue, up from 32.06% in 2024. The global energy storage system shipments for the year reached 43 GWh (gigawatt-hours).

During the reporting period, Sungrow Power made significant advances in large-scale and industrial energy storage. The company launched the world’s largest capacity PowerTitan 3.0 AC intelligent storage platform (energy density over 500 kWh/m³) and achieved full coverage of voltage levels from 400V to 35kV in the industrial and commercial energy storage market. Additionally, its pioneering “Stem Cell Grid Technology” has been applied in multiple grid-connected energy storage projects.

At the same time, the company introduced the MegaFlex “Factory-as-Product” green hydrogen integrated solution and secured projects in Oman, Italy, Brazil, and other countries, highlighting its growing international competitiveness.

Photovoltaic Business Revenue Declines 7%

Despite the impressive performance of the energy storage system business, Sungrow Power’s photovoltaic inverter shipments and revenue faced downward pressure. As a traditional core business, the photovoltaic industry achieved revenue of 44.55 billion yuan in 2025, a decrease of 7% year-over-year; global shipments of photovoltaic inverters totaled 143 GW (gigawatts), down 2.72% from 147 GW the previous year.

The reporter observed that the company’s new energy investment and development business generated revenue of 16.56B yuan, a decline of 21.16% year-over-year. The gross margin for this segment also fell by 4.9 percentage points to 14.5%.

In response to “price wars” and competition, Sungrow Power’s strategy is “low-cost innovation” and “building a technological moat.” The annual report shows that R&D expenses in 2025 increased by 31.97% to 4.18B yuan. The company is also advancing its AIDC (Intelligent Computing Center) power supply business and has globally pioneered the demonstration operation of 10kV/2MW medium-voltage energy routers.

Furthermore, Sungrow Power explicitly states in its risk warnings that international trade barriers and geopolitical risks are intensifying, the global supply chain remains fragmented, and domestic export tax rebates are gradually phased out. For a company like Sungrow Power, with 60.54% of revenue coming from overseas markets (about 53.99B yuan), these external challenges cannot be ignored in the future.

The annual report also mentions that to deepen its global strategic layout, enhance international brand image, and diversify financing channels, Sungrow Power has initiated the issuance of H-shares and listing on the Hong Kong Stock Exchange. The raised funds will be used for global localization, R&D investment, and digital transformation.

Daily Economic News