With solar inverter product shipments maintaining global leadership for ten consecutive years, this 6-year 10-bagger stock has seen its market value surge over 100% this year. A-share sector leader Sungrow Power Supply Co.,Ltd. (300274.SZ) has finally set its sights on international capital markets.
Sungrow Power Supply Co.,Ltd. has submitted its listing application to the Hong Kong Stock Exchange's Main Board, with China International Capital Corporation Limited serving as its sole sponsor. According to Frost & Sullivan analysis, based on 2024 shipment volumes, the company holds approximately 25.2% of the global solar inverter market share, maintaining global leadership in shipments for ten consecutive years. Additionally, in wind power converters, the company commands a 31.4% global market share, leading the second-place competitor by 11.8 percentage points.
The company has established a comprehensive global network layout. As of June 30, 2025, its products and services have been sold to over 100 countries and regions worldwide. The company demonstrates steady business growth, with 2024 revenue of 77.704 billion yuan, compound annual growth rate of 39.19% from 2022-2024, and continued growth of 40.3% in the first half of 2025. Profitability is also exceptionally strong, showing a continuous upward trend, with net profit margin reaching 18% in the first half of the year, hitting a new high.
**Core Business Segments Show High Growth with Steadily Rising Profitability**
Established in 1997, Sungrow Power Supply Co.,Ltd. started with solar inverter business and gradually expanded to cover five major tracks: "solar, wind, storage, power, and hydrogen." Currently, it has three core business segments: electronic power conversion equipment, energy storage systems, and new energy investment and development.
In the first half of 2025, the three major businesses contributed 35.3%, 41%, and 19.3% of revenue respectively. Additionally, the company has other products such as smart energy operation and maintenance services, contributing 4.4% of revenue.
From 2022-2024, electronic power conversion equipment performance remained steady with decelerating but still double-digit growth. Energy storage systems business serves as the core growth engine, with revenue share continuously increasing under high growth, while new energy investment and development revenue shows volatile downward trends.
In the first half of 2025, the three major business segments saw revenue growth of 17%, 127.7%, and -6.2% respectively, with energy storage systems contributing 80% of revenue growth.
Specifically, electronic power conversion equipment mainly includes solar inverters, wind power conversion and transmission products, and new energy vehicle electronic control and power system products. The core product is solar inverters, with product lines covering central inverters, modular inverters, string inverters, residential inverters, and micro inverters, serving various application scenarios from ground-mounted power stations to residential and commercial installations.
As of June 2025, its solar inverters have been sold to over 100 countries and regions globally, maintaining leading global market share year-round. Energy storage systems are suitable for various AC or DC coupled residential, commercial, and grid-side scenarios. In 2022, the company launched the industry-leading PowerTitan and PowerStack liquid-cooled energy storage systems, and in 2025 introduced the breakthrough PowerTitan 3.0 energy storage system with continuous product iterations. Its Plus system is the world's largest single-cabinet capacity and highest energy density lithium battery energy storage system. As of June 2025, the company's cumulative energy storage system shipments reached 70 GWh, globally leading.
These two major businesses constitute the company's fundamental base, driving sustainable business growth. Sungrow's products cover over 100 countries and regions globally. With domestic solar industry growth slowing, overseas markets have surged ahead, with revenue share increasing from 47.5% in 2022 to 58.4% in the first half of 2025, exceeding domestic revenue.
The company primarily uses direct sales, with direct sales revenue accounting for over 90%. As of June 2025, over 520 service outlets have been established globally. The company's customer base is relatively diversified, with the top five customers accounting for 23.6% of revenue in the first half of 2025.
With scale advantages and industry leadership position, the company's profitability shows a continuous upward trend. In terms of gross margin, the first half of 2025 reached 32.9%, up 0.8 percentage points year-over-year and 12.5 percentage points compared to 2022.
By business segment, the two core businesses show stable gross margin improvement, especially energy storage systems, with gross margin rising from 25.2% in 2022 to 41%, contributing core gross profit.
Additionally, the company's operating expenses remain stable. Historically, management expense ratio stays at 2-3%, sales expense ratio at 4-5.7%, and financial expense ratio at 0.4-0.6%.
Benefiting from continuously rising gross margins and stable expense ratios, Sungrow's net profit margin continues to climb, reaching 18% in the first half of 2025, up 1.7 percentage points year-over-year and 8.8 percentage points compared to 2022, with annualized shareholder ROE reaching 36.4%.
**Stable Industry Leadership Position Makes Hong Kong Listing Worth Anticipating**
From an industry perspective, driven by global low-carbon targets and energy structure adjustments, the global clean electricity conversion equipment market maintains high growth momentum, with 2024 market size of $72.4 billion, five-year compound growth rate of 42.6%, expected to reach $260.9 billion by 2030 with compound growth rate of 23.8%.
This benefits from continuous growth in global solar new installed capacity, with five-year compound growth rate reaching 37.2%. Within the clean electricity conversion equipment market, the energy storage systems industry performs best, with 2020-2024 compound growth rate of 88.5%, expected to reach $105.1 billion market size by 2030 with compound growth rate of 24.4%, with market share rising to 40.3%. The solar inverter industry also performs well, growing at 24.8% compound growth rate, expected to reach $43.2 billion by 2030, accounting for 16.56%.
These two major industries form Sungrow's fundamental base, bringing sustainable development growth opportunities. Sungrow's fundamental base maintains stable industry leadership. In solar inverters, the global market shows high concentration, with top five companies collectively holding 63.9% market share in 2024, while the company holds 25.2% market share, firmly ranking first and maintaining industry leadership for ten consecutive years.
Additionally, in the energy storage systems industry, the company ranks second globally with 11.9% market share, with the first place holding 13.3%.
Beyond scale advantages, the company's technological advantages are also notable. It has established a mature and comprehensive R&D system, with six major R&D centers in Hefei, Shanghai, Nanjing, Shenzhen, Germany, and the Netherlands, and built an R&D architecture consisting of a central research institute and various business unit R&D teams, with R&D employees accounting for 40%.
As of June 2025, the company has applied for over 10,500 patents cumulatively, making it one of the few companies in the industry mastering multiple proprietary core technologies.
The strong R&D system keeps the company's products at the industry forefront. For example, in the solar field, it launched the world's first 2,000V high-voltage inverter and the world's first split modular inverter 1+X2.0. In the energy storage field, it launched the PowerTitan series products for large-scale energy storage power stations, with PowerTitan series now iterated to version 3.0, equipped with the world's first mass-producible 684Ah large cell.
Therefore, Sungrow enjoys strong customer demand with very high capacity utilization rates. The company has capacity distribution both domestically and overseas, with domestic solar inverter and energy storage system design capacities of 119GW and 28GWh respectively, while overseas capacity is mainly for solar inverters with 50GW design capacity. Historically, both major businesses maintain capacity utilization rates exceeding 100%, reaching 114.8% and 127.6% respectively in the first half of 2025.
The company plans global capacity expansion, potentially fully benefiting from industry development dividends and maintaining sustained high business growth.
In summary, Sungrow demonstrates impressive fundamentals. First, its two core businesses maintain performance growth, with energy storage systems business growing rapidly and driving strong performance. Both businesses possess scale advantages with stable industry leadership positions, product technology advantages, launching industry-leading products, and capacity utilization rates exceeding 100%, urgently requiring expansion to meet market demand.
The company's profitability also continues to improve with high shareholder returns. This Hong Kong listing will likely attract attention from large capital including dual-carbon ESG investors and long-term value investors, making the Hong Kong listing worth anticipating.
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