Key Changes This Quarter
Sungrow Power Supply (300274.SZ) faced significant operational pressure in Q1 2026. Key changes include:
- Dual Decline in Revenue and Profit: Revenue reached 15.56B RMB, down 18.26% year-over-year; net profit was 2.29B RMB, down 40.12% year-over-year.
- Surge in Financial Expenses: Exchange rate losses pushed financial expenses to 328M RMB, a year-over-year increase of 654%, becoming a major factor eroding profitability.
- Explosion in Prepayments: As of the end of Q1, the balance of prepayments reached 4.04B RMB, an increase of over 200% from the end of the previous year, indicating that the company is adopting more aggressive procurement strategies to cope with raw material price fluctuations or to secure critical supplies.
- Energy Storage Business Development: Although Q1 revenue was impacted by project schedules, the company still views energy storage as its primary growth engine, with an annual global shipment target of over 60GWh (striving for a 30%-50% upper limit of growth in the global market).
Outlook for Next Quarter
The market is closely watching Sungrow’s subsequent development, with focus on the following:
- Project Delivery Schedule: As the construction progress of large-scale energy storage projects (e.g., in the Middle East and other overseas markets) advances, revenue recognition and profitability are expected to recover in Q2 and subsequent quarters.
- Cost and Exchange Rate Management: The company needs to closely monitor raw material costs and foreign exchange hedging to alleviate the pressure of financial expenses on profit margins.
- Revenue Expectations: Analysts are cautiously optimistic about performance in subsequent quarters. Based on institutional estimates, quarterly revenue scale is expected to expand compared to Q1.
EPS Forecast for the Coming Year (Full Year 2026)
Based on a compilation of data from various institutions, the market’s outlook for Sungrow’s 2026 full-year performance is as follows:
- EPS Forecast: Based on a consensus of multiple institutions, the full-year 2026 earnings per share (EPS) is expected to be approximately 7.69 RMB.
- Year-over-Year Growth: If this forecast is met, it would represent an annual growth of approximately 17.4% compared to the previous year.
- Market Consensus: Current market sentiment toward the stock remains generally positive. Most analysts maintain a “buy” recommendation, believing that its technical accumulation and global footprint in the solar-plus-storage market provide long-term growth resilience, even in the face of short-term market volatility and competition.
Disclaimer: The above data is based on market public analysis and forecasts compiled as of early June 2026. Investment forecasts involve uncertainty; please refer to the company’s official periodic reports for actual operating performance.
Source:
- https://finance.eastmoney.com/a/202605013727375616.html
- https://eu.36kr.com/en/p/3820359575376261
- https://news.futunn.com/en/post/72192982/after-two-consecutive-quarters-of-decelerating-performance-sungrow-s-net
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