Initiating Coverage of Sungrow Power Supply With No-Moat Rating, CNY 86 Fair Value Estimate

Sungrow Power Supply is one of the largest suppliers of solar inverters with more than 20% global market share in 2022. With an established stronghold in supplying inverters for utility-scale solar, Sungrow is trying to expand its presence in distributed solar. Distributed solar is a more fragmented market than utility-scale solar, and we expect Sungrow to face more competition on this front. Nonetheless, we expect Sungrow’s solar inverter shipment to grow at a 25% CAGR over our projected five-year period given rapid growth in solar installations.