SNEC展会要点：储能强劲，太阳能疲软

EquitiesElectricalEquipment SNEC takeaways:ESS strong, solar weak China ◆There was a strong business feelingamong China’s energystorage system (ESS) suppliers, especially residential ESS… ◆…whilethe adoption ofspaceperovskitecellsandsolid-statetransformerscould bebelowmarket expectations◆We prefer Deyeand Hongfa,bothrated Buy Corey Chan* (Reg. No. S1700518100001)Head, A-share Industrials & Renewables ResearchHSBC Qianhai Securities Limitedcorey.chan@hsbcqh.com.cn+86 21 5066 2001 Dun Wang*, CFA, CPA (Reg. No. S1700519060002)Analyst, A-share Industrials & Renewables ResearchHSBC Qianhai Securities Limiteddun.wang@hsbcqh.com.cn+86 21 5066 2027 On 3-4 June 2026, during the SNEC (Photovoltaic Power Conference & Exhibition)inShanghai, we visited the booths ofSungrow (300274 CH),Deye (605117 CH),Sieyuan (002028 CH), Longi (601012 CH), First Applied Material (603806 CH),EveEnergy (300014 CH),S.C New Energy Technology (300724 CH), LaplaceRenewable Energy Tech (688726 CH),andShanghai Geoharbour(605598 CH), andtalked to their respectivesales andmanagement teams. Here are the key takeaways: Gary Yao* (Reg. No. S1700525080001)Analyst, A-share Industrials & Renewables ResearchHSBC Qianhai Securities Limitedgary.x.d.yao@hsbcqh.com.cn+86 21 5066 2078 Space solar:Wesawvariousspace-level perovskitecell productsfromdifferentcompanies during SNEC. However,we believe adoption in space could bedifficultandslowgivenconcerns overreliability andthetimeneeded to gatherenough datafrom spaceto perfect theproduct.As a result, webelievetheadoptionof perovskitecellshereonEarth willbe quicker.Comparedwith silicon-basedsolar cells,perovskite cells arelighter and can generate 10-18% more powerin weak-lightenvironments.Thesefeaturesmake them ideal forapplications such asbuildingintegrated PVs (BIPVs), powerforsmart doorlocks,and portable electronicdevices. Echo Zhang* (Reg. No. S1700525050001)Analyst, A-share Industrials & Renewables ResearchHSBC Qianhai Securities Limitedecho.x.zhang@hsbcqh.com.cn+86 10 5795 2314 * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and isnot registered/ qualified pursuant to FINRA regulations. Ground solar:We see a weak demand outlookfor the solar supply chain in 2026asChinahas switched from afeed-in tariff system toamarket-oriented pricing system inJune 2025. Competition insolarmodulesis likely tobecomemoreintense with newplayers entering thesector–non-traditionalplayerssuch asBOE and Sungrowshowcasedtheir module productsduring SNEC. Utility-scaleESS:WebelieveChinese utility-scale ESS supplierslike Sungrowarelikely to be negatively affected by the EU funding ban on projects using Chineseinverters. On 22 April 2026,theEU commission banned EU funds from supportingrenewable projects using inverters from China.We believe that theban could havemore of an impact onutility-scale projects than commercial & industrial (C&I)projects. We estimate that c20% of the utility-scalephotovoltaics (PVs)and ESSmarket in Europe could beimpactedvs c5%for theC&I market. ResidentialESS:China’s export of lithium batteriesto top10 markets surged 29%y-o-yin 4M26 (Exhibit1). We believethisispartly due tostrong demandfromoverseasresidential ESS. Lithium battery exports to Australia grew 1.9x in4M26, onthe back oftheCheaper Battery Programthat subsidises residential ESS.WhileAustralia’s Cheaper Battery Programbegan phasing out from1 May 2026,theUK’sWarm Home Plan, with a funding size of GBP15bn forroof-top solar/ESS/heatpumps,is due to come into effect in late2026.Excluding China/EU/US, global solarplus wind penetrationis starting toapproach double digits. Thisis likely tolead to gridbottlenecks for most countriesas they look tointegrate additional solar and windpowerinto their energy programs. Toovercome this difficulty, we expect theglobalpolicyto switch its priority focusto promotingESS deploymentrather thanpromotingsolardevelopment(China Energy Storage: Residential ESS ready to shine, 29 April2026).We believe thisis likely tobenefit Deye,as it hadamarket share ofc24% intheresidential ESS inverter market globally in2024. Solid-state-transformer(SST):Wesawmany developersshowcasingtheirSSTprototypes (e.g. Weiguang EnergyandEaglerise)during SNEC. However, as with allgrid equipment, the application of SSTis likely tobe gradual givenconcerns overgridstability and safetyissues. We believe the application of 800V high-voltage-direct-current(HVDC) could be faster as it is a relatively mature technology, and requires limitedchanges to the existing data center power supply infrastructure. We believe this shouldbenefit Hongfaas it has a market share ofc40% in the global HVDC relay market.SeeValuation and Risks onpage4. Disclosures & DisclaimerThis report must be read with thedisclosures and the analyst certifications in Issuer of report:HSBC Qianhai Securities Limited the Disclosure appendix, and with the Disclaimer, which forms part of it. View HSBCQianhai Securitiesat:https://www.research.hsbc.com Key takeaways