Net profit growth of nearly 22% still falls short of institutional expectations; photovoltaic business revenue declines by 7%! Is Sungrow Power Supply relying on energy storage to "fill in"?

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In a post-market announcement on March 31, Sunshine Power (SZ300274, share price 150.76 yuan, market cap 312.6 billion yuan) released its 2025 annual report. For 2025, the company achieved revenue of approximately 89.184 billion yuan, up 14.55%; net profit attributable to shareholders of listed companies of approximately 13.461 billion yuan, up 21.97%; net profit excluding non-recurring items of approximately 12.829 billion yuan, up 19.98%; and basic earnings per share (EPS) of 6.55 yuan, up 23.12%. The company plans to, based on the share capital after excluding the treasury shares already repurchased from the repurchase-special securities account, distribute cash dividends of 6.9 yuan (including tax) to all shareholders for every 10 shares.

Image source: Sunshine Power annual report

Viewed longitudinally, this is the first time Sunshine Power has surpassed the 800 billion yuan revenue mark and the 130 billion yuan net profit attributable to parent mark in a single accounting year. By quarter, in Q4 2025, Sunshine Power achieved revenue of 22.782 billion yuan, down 18.37% year over year and down 0.38% quarter over quarter; net profit attributable to parent was 1.58 billion yuan, down 54.02% year over year and down 61.9% quarter over quarter.

Revenue and net profit both fell short of analysts’ consensus expectations; energy-storage business revenue grew by nearly 50%

According to data compiled by Wind Financial Terminal, 22 institutions’ consistent forecasts for Sunshine Power’s 2025 revenue and net profit attributable to parent were approximately 97.171 billion yuan and 15.333 billion yuan, respectively. Therefore, judging from the company’s disclosed performance, both revenue and net profit attributable to parent were below analysts’ consensus expectations: the company’s reported revenue and net profit attributable to parent were 8.22% and 12.21% lower, respectively, than the institutions’ consensus forecasts; moreover, both revenue and net profit attributable to parent were lower than the prediction values of all 22 institutions.

Image source: Wind Financial Terminal

In addition to growth in performance, the annual report shows that in 2025 Sunshine Power achieved a gross margin of 31.83%, up 1.89 percentage points year over year, mainly due to factors such as the company’s brand premium, product innovation, and economies of scale. At the same time, the company’s net cash flow from operating activities during the period reached 16.918 billion yuan, up 40.18%, with the increase exceeding the growth of net profit attributable to parent.

On the expense side, with revenue growth of 14.55%, Sunshine Power’s selling expenses during the period increased 28.49% year over year to 4.832 billion yuan; and administrative expenses increased 42.79% year over year to 1.715 billion yuan.

A reporter from The Economic Daily News (hereinafter “Jingji Daily reporter”) noted that Sunshine Power’s energy storage system business performed remarkably in 2025. During the period, this business achieved revenue of approximately 37.287 billion yuan, up 49.39%, and its share of total revenue rose from 32.06% in 2024 to 41.81%. The company’s global energy storage system shipments for the full year reached 43GWh.

Image source: Sunshine Power annual report

In addition, during the reporting period, Sunshine Power made efforts across both large-scale storage and industrial and commercial storage: the company released PowerTitan 3.0, the world’s largest-capacity PowerTitan 3.0 AC intelligent storage platform (energy density over 500 kWh/m²), and achieved full coverage of 400V to 35kV voltage classes in the industrial and commercial energy storage market. Meanwhile, its pioneering “stem-cell grid technology” has been applied in multiple grid-forming energy storage projects.

Beyond the energy-storage business, Sunshine Hydrogen Energy topped the country in terms of domestic winning share during the period. The company launched MegaFlex’s “factory as product” green hydrogen one-stop solution, and it also secured projects overseas in places such as Oman, Italy, and Brazil, with its international competitive strength beginning to stand out.

Traditional photovoltaic business revenue declined 7% year over year

Although the energy storage system business performed well during the period, Sunshine Power’s photovoltaic inverters faced pressure from both shipment volume and revenue declining. As a traditional core business, the photovoltaic business achieved operating revenue of 44.55 billion yuan in 2025, down 7% year over year; the company’s global photovoltaic inverter shipments were 143GW, down 2.72% from 147GW in the prior year.

A Jingji Daily reporter noted that the company’s new energy investment development business achieved revenue of 16.559 billion yuan, down 21.16% year over year. The gross margin of this business fell 4.9 percentage points year over year to 14.5%.

Image source: Sunshine Power annual report

In response to the “price war” and competition, Sunshine Power’s strategy is “low-cost innovation” and “a technology moat.” The annual report shows that the company’s R&D expenses in 2025 increased 31.97% year over year to 4.175 billion yuan. At the same time, the company is advancing the power business layout for AIDC (intelligent computing centers), and it has also pioneered the demonstration operation of a 10 kV/2 MW medium-voltage energy router worldwide.

Image source: Sunshine Power annual report

Sunshine Power also clearly stated in its risk warnings that international trade barriers and geopolitical risks have further intensified, the global supply chain continues to be fragmented, and at the same time domestic export VAT rebate policies are gradually being reduced. For Sunshine Power—which has a high overseas revenue contribution of 60.54% (approximately 53.992 billion yuan)—this is an external challenge that cannot be ignored in the future.

The annual report also mentions that, to deepen its global strategy, enhance its international brand image, and broaden diversified financing channels, Sunshine Power has initiated relevant work during the reporting period for an H-share stock issuance and listing on the Hong Kong Stock Exchange. The raised funds will be used for global localized deployment, R&D investment, digital transformation, and so on.

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