# Sungrow Power Supply (300274.SHE)

Canonical: https://gigainvestors.com/s/300274.SHE

Analysis as of: 2026-10-16T07:34:35.611Z. Financial observations: FY2008–FY2025.

Listing currency: CNY. Reporting currency: CNY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: CNY 76.10 per share; close as of 2026-10-15.

Estimated value: low CNY 80.26 per share, central CNY 107.57 per share, high CNY 123.48 per share. Buy at or below the central value CNY 107.57 per share. Valuation as of 2026-10-16T07:34:35.611Z; scenarios are not confidence intervals.

Expected annual return: 13.5% at the stated quote. About 13.5% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; CN 10-year bond 1.7% + 4 points).

## Checklist

### understandable: pass

- 0 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.32×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.10×

- FY2017: 0.13×

- FY2018: 0.09×

- FY2019: 0.08×

- FY2020: 0.11×

- FY2021: 0.08×

- FY2022: 0.10×

- FY2023: 0.16×

- FY2024: 0.17×

- FY2025: 0.20×

### moat: pass

- ROIC, median of available years: 27.1%

- ROIC, second-lowest year: 15.2%

- Typical minus recent gross margin: -4.7 pp

- Typical gross margin (annual median): 24.3%

- Recent gross margin (lower of latest and 3-year median): 29.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.5%

- ROIC including acquisitions, ten-year median: 23.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 15.2%

- FY2017: 19.1%

- FY2018: 14.6%

- FY2019: 19.8%

- FY2020: 43.8%

- FY2021: 22.0%

- FY2022: 32.1%

- FY2023: 64.5%

- FY2024: 70.3%

- FY2025: 80.7%

### economics: pass

- Owner earnings / net income, 5-yr: 0.95×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 37B

- Net income, five-year total: CNY 39B

- Return on incremental invested capital: 59.0%

- Working capital / revenue, annual change: -0.2 pp

- Working capital / revenue, change between three-year averages: -2.5 pp

- Working capital / revenue, final three-year average: 24.8%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.76×

- FY2022: 0.98×

- FY2023: 0.99×

- FY2024: 0.89×

- FY2025: 0.99×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 15.2% vs 70.3%

- Per-share earnings: 0.39 to 5.32 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 5.4%

- Ordinary dilution, 5-year annual growth: 7.0%

- Market cap gain: CNY 337B

- Cumulative retained earnings: CNY 36B

- Diluted shares, 10-year annual growth: 5.4%

- Diluted shares, 5-year annual growth: 7.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 38.8%

- Per-share value change: CNY 4.93

- Per-share value, starting three-year median: CNY 0.39

- Per-share value, ending three-year median: CNY 5.32

- Buybacks concentrated in cheaper years (correlation): 0.68

- Average buyback yield: 0.2%

- Buyback history: 7 years

- Debt-funded buybacks: Yes

- Acquisition spending: CNY 1.4B

- Cumulative net income, 10 years: CNY 44B

- ROIC, first three-year median: 15.2%

- ROIC, last three-year median: 70.3%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.39

- FY2017: CNY 0.72

- FY2018: CNY 0.54

- FY2019: CNY 0.60

- FY2020: CNY 1.33

- FY2021: CNY 1.07

- FY2022: CNY 1.73

- FY2023: CNY 4.55

- FY2024: CNY 5.32

- FY2025: CNY 6.53

### accounting: pass

- Sloan accruals: -2.9%

- Receivables to sales index (DSRI): 0.62×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.26×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.03×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -2.7%

- FY2017: 1.0%

- FY2018: 3.4%

- FY2019: -7.0%

- FY2020: -4.0%

- FY2021: 7.5%

- FY2022: 3.9%

- FY2023: 3.0%

- FY2024: -0.9%

- FY2025: -2.9%

## Holders

## Price story

Down 60% since Oct 2025 · sales +14.5%

Story as of 2026-10-16T10:00:01.466Z; price observation 2026-10-15.

Price needs cash profits to grow 1.2% a year for ten years

### Sales · FY2024–2025

sales +14.5%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 6.0B 

- FY2017: CNY 8.9B 

- FY2018: CNY 10B 

- FY2019: CNY 13B 

- FY2020: CNY 19B 

- FY2021: CNY 24B 

- FY2022: CNY 40B 

- FY2023: CNY 72B 

- FY2024: CNY 78B 

- FY2025: CNY 89B 

### Gross margin · FY2025

gross margin 31.8%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 24.3% 

- FY2017: 27.0% 

- FY2018: 24.4% 

- FY2019: 23.4% 

- FY2020: 22.7% 

- FY2021: 21.1% 

- FY2022: 23.5% 

- FY2023: 25.5% 

- FY2024: 29.0% 

- FY2025: 31.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in electrical equipment & parts; annual sales are CNY 89.2 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:35.611Z); FY2025: revenue 89184357325.77; grossProfit 28388898027.61; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 300274.SHE: Sungrow Power Supply Co., Ltd. engages in the research and development, manufacture, sale, and service of new energy power supply equipment. The company offers photovoltaic inverters, energy storage systems, wind power converters and transmission products, electric control and power supply systems for new energy vehicles, charging equipment, smart energy operation service, floating PV systems, and hydrogen energy equipment, as well as new energy investment and development. It operates in Mainland China, Hong Kong, Macao, Taiwan, Europe, the Americas, the Middle East, Africa, the Asia-Pacific, and China. Sungrow Power Supply Co., Ltd. was founded in 1997 and is headquartered in Hefei, China.

### Why customers stay

Margins ranged from 25.5% to 31.8% during 2023–25; it earns 27.1% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:35.611Z); FY2023: grossProfit / revenue = 25.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:35.611Z); FY2024: grossProfit / revenue = 29%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:35.611Z); FY2025: grossProfit / revenue = 31.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:35.611Z); 10-year return on capital observations [[2016,0.1519921362317712],[2017,0.19079602193200743],[2018,0.14552594605578276],[2019,0.19849810084113303],[2020,0.4382411182995389],[2021,0.220387832042281],[2022,0.32121327404049455],[2023,0.6452862083227259],[2024,0.7034693187065777],[2025,0.8067898658456911]]; median 0.2708005530413878. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 13.4% of cash earnings on expansion; earns 59% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:35.611Z); FY2017: growth capex 230894079.04000002; upkeep 125565966; owner earnings 1024196707. Growth capex / owner earnings = 0.2254391929420644.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:35.611Z); FY2018: growth capex 278341602.1087061; upkeep 561391747.5412939; owner earnings 392189106.45870614. Growth capex / owner earnings = 0.7097127317533306.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:35.611Z); FY2019: growth capex 463478511.99; upkeep 219802121; owner earnings 892552825. Growth capex / owner earnings = 0.519272920333875.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:35.611Z); FY2020: growth capex 727744215.57; upkeep 233184744; owner earnings 1954308250. Growth capex / owner earnings = 0.37237944196878875.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:35.611Z); FY2021: growth capex 1045289734.3794228; upkeep 620359364.0205773; owner earnings 1203625013.0394228. Growth capex / owner earnings = 0.8684513225093521.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:35.611Z); FY2022: growth capex 1156843522.85; upkeep 369922586; owner earnings 3507246699.59. Growth capex / owner earnings = 0.3298437840101855.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:35.611Z); FY2023: growth capex 2237187641; upkeep 505460275; owner earnings 9374796823.1. Growth capex / owner earnings = 0.23863852019570708.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:35.611Z); FY2024: growth capex 922055500.936533; upkeep 1863897261.063467; owner earnings 9829056793.318533. Growth capex / owner earnings = 0.09380915385119311.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:35.611Z); FY2025: growth capex 1788059514.791721; upkeep 1219959308.8082788; owner earnings 13330368618.059721. Growth capex / owner earnings = 0.1341342888574959.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:35.611Z); Incremental return on capital 0.5898489016576555, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:35.611Z); Dividend observations: [[2016,97173514.28],[2017,120978293.32],[2018,194475921.14],[2019,87531806],[2020,101976899],[2021,203971509],[2022,163372806],[2023,602722551],[2024,1737973100],[2025,4387370120.11]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:35.611Z); FY2025: cash repurchases 1389241134.2833333 CNY.

### Are managers owners

Insiders own 32.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 300274.SHE SharesStats.PercentInsiders = 32.534 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 1.2% yearly over ten years; actual growth was 33.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:35.611Z); Ten-year compound average after fade. Initial solved rate 0.0038420690941522806. Price 76.1; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.3488283646440951 → FY2025 6.466495561777635. Closing-price date 2026-10-15.

## Monthly share-price history (CNY per share)

- 2016-10: CNY 11.72 per share

- 2016-11: CNY 11.55 per share

- 2016-12: CNY 10.54 per share

- 2017-01: CNY 10.14 per share

- 2017-02: CNY 10.46 per share

- 2017-03: CNY 10.12 per share

- 2017-04: CNY 9.72 per share

- 2017-05: CNY 9.75 per share

- 2017-06: CNY 11.09 per share

- 2017-07: CNY 12.64 per share

- 2017-08: CNY 12.72 per share

- 2017-09: CNY 16.83 per share

- 2017-10: CNY 19.32 per share

- 2017-11: CNY 16.44 per share

- 2017-12: CNY 18.77 per share

- 2018-01: CNY 16.87 per share

- 2018-02: CNY 16.48 per share

- 2018-03: CNY 19.18 per share

- 2018-04: CNY 18.17 per share

- 2018-05: CNY 14.29 per share

- 2018-06: CNY 8.97 per share

- 2018-07: CNY 7.85 per share

- 2018-08: CNY 6.82 per share

- 2018-09: CNY 6.91 per share

- 2018-10: CNY 5.85 per share

- 2018-11: CNY 8.37 per share

- 2018-12: CNY 8.92 per share

- 2019-01: CNY 11.05 per share

- 2019-02: CNY 11.36 per share

- 2019-03: CNY 10.99 per share

- 2019-04: CNY 12.24 per share

- 2019-05: CNY 10.05 per share

- 2019-06: CNY 9.35 per share

- 2019-07: CNY 10.28 per share

- 2019-08: CNY 12.01 per share

- 2019-09: CNY 11.30 per share

- 2019-10: CNY 9.78 per share

- 2019-11: CNY 10.22 per share

- 2019-12: CNY 10.53 per share

- 2020-01: CNY 11.38 per share

- 2020-02: CNY 11.42 per share

- 2020-03: CNY 9.52 per share

- 2020-04: CNY 10.90 per share

- 2020-05: CNY 11.26 per share

- 2020-06: CNY 14.39 per share

- 2020-07: CNY 21.07 per share

- 2020-08: CNY 21.95 per share

- 2020-09: CNY 27.45 per share

- 2020-10: CNY 38.83 per share

- 2020-11: CNY 48.06 per share

- 2020-12: CNY 72.28 per share

- 2021-01: CNY 104.80 per share

- 2021-02: CNY 86.48 per share

- 2021-03: CNY 71.78 per share

- 2021-04: CNY 89.90 per share

- 2021-05: CNY 96.90 per share

- 2021-06: CNY 115.06 per share

- 2021-07: CNY 167.80 per share

- 2021-08: CNY 157.28 per share

- 2021-09: CNY 148.38 per share

- 2021-10: CNY 164.10 per share

- 2021-11: CNY 161.48 per share

- 2021-12: CNY 145.80 per share

- 2022-01: CNY 113.99 per share

- 2022-02: CNY 121.10 per share

- 2022-03: CNY 107.26 per share

- 2022-04: CNY 63.20 per share

- 2022-05: CNY 79.96 per share

- 2022-06: CNY 98.25 per share

- 2022-07: CNY 123.86 per share

- 2022-08: CNY 111.40 per share

- 2022-09: CNY 110.62 per share

- 2022-10: CNY 130.92 per share

- 2022-11: CNY 115.00 per share

- 2022-12: CNY 111.80 per share

- 2023-01: CNY 130.00 per share

- 2023-02: CNY 119.60 per share

- 2023-03: CNY 104.86 per share

- 2023-04: CNY 112.74 per share

- 2023-05: CNY 110.14 per share

- 2023-06: CNY 116.63 per share

- 2023-07: CNY 111.50 per share

- 2023-08: CNY 99.75 per share

- 2023-09: CNY 89.51 per share

- 2023-10: CNY 84.15 per share

- 2023-11: CNY 83.20 per share

- 2023-12: CNY 87.59 per share

- 2024-01: CNY 78.39 per share

- 2024-02: CNY 87.21 per share

- 2024-03: CNY 103.80 per share

- 2024-04: CNY 103.35 per share

- 2024-05: CNY 98.69 per share

- 2024-06: CNY 62.03 per share

- 2024-07: CNY 68.83 per share

- 2024-08: CNY 77.00 per share

- 2024-09: CNY 99.58 per share

- 2024-10: CNY 90.62 per share

- 2024-11: CNY 81.28 per share

- 2024-12: CNY 73.83 per share

- 2025-01: CNY 72.10 per share

- 2025-02: CNY 70.90 per share

- 2025-03: CNY 69.41 per share

- 2025-04: CNY 60.60 per share

- 2025-05: CNY 60.39 per share

- 2025-06: CNY 67.77 per share

- 2025-07: CNY 72.00 per share

- 2025-08: CNY 99.87 per share

- 2025-09: CNY 161.98 per share

- 2025-10: CNY 189.80 per share

- 2025-11: CNY 182.90 per share

- 2025-12: CNY 171.04 per share

- 2026-01: CNY 151.00 per share

- 2026-02: CNY 144.50 per share

- 2026-03: CNY 150.76 per share

- 2026-04: CNY 137.41 per share

- 2026-05: CNY 177.99 per share

- 2026-06: CNY 159.02 per share

- 2026-07: CNY 103.37 per share

- 2026-08: CNY 91.50 per share

- 2026-09: CNY 82.49 per share

- 2026-10: CNY 79.91 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 6.03 per share, central CNY 6.56 per share, high CNY 7.28 per share

- FY2017: low CNY 8.30 per share, central CNY 9.18 per share, high CNY 10.34 per share

- FY2018: low CNY 11.15 per share, central CNY 14.89 per share, high CNY 17.07 per share

- FY2019: low CNY 11.98 per share, central CNY 15.50 per share, high CNY 17.55 per share

- FY2020: low CNY 17.50 per share, central CNY 22.75 per share, high CNY 25.80 per share

- FY2021: low CNY 22.75 per share, central CNY 29.27 per share, high CNY 33.07 per share

- FY2022: low CNY 24.01 per share, central CNY 31.76 per share, high CNY 36.27 per share

- FY2023: low CNY 50.24 per share, central CNY 67.92 per share, high CNY 78.21 per share

- FY2024: low CNY 65.40 per share, central CNY 87.55 per share, high CNY 100.46 per share

- FY2025: low CNY 89.80 per share, central CNY 121.62 per share, high CNY 140.14 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations