SST首发驱动下一波增长，全栈产品布局

China (PRC) | Alternative EnergySungrow Debut of SST powering the next wave ofgrowth; full stack products to come Sungrow officially launched its SST product (EnerNeo) tailored for AIDCon 9th Jul. 50+ buy/sell-side analysts participated the event. We notethat investors are focused on actual orders from Hyperscaler will stilltake time as Sungrow continues to customize its product based on clientfeedback. Mgmt is confident on its progress so far with 2-3 major clients.Mgmt expects SST prototype/mass production/commercialization in US by1Q/2-3Q27/27YE. Debut of Sungrow's SST product - EnerNeo.Sungrow officially launched its solid-statetransformer (SST) productEnerNeo on 9th Jul tailored for full-scenario AIDC. EnerNeoconverts10-13.8kV AC to 800V DC, at a power rating of1.5MW per module.With apowerdensity of 312kW/sqm, EnerNeoreduces power equipments' space and delivery time by50%, and achieve98.5% peak efficiency. Its power conversion cabinet contains 3 key modules: front (MV power module), middle(high-frequency transformer module), back (LV power module). The cabinet adoptspluggabledesign,enabling 99.999%system availability,supporting fast repair,maintenance orreplacement of key components while not interrupting operations by separating MV andLV modules.MV modulefeatures 6+3 single-phase design, improving Mean Time BetweenFailures by 100%;High-frequency transformer module, with efficiency of 99.6%, commandscompact design and higher power density, realized by the adoption of insulation material andadvanced electric field mitigation tech;LV modulehas short-circuit current limiting protectioncapability, enabling selective protection coordination among downstream protection devicesacross different voltage levels. EnerNeo's light weight, MV module of <20kg and LV module of <1kg per module, also enablesmore convenient installation and maintenance. In addition, EnerNeo is designed with digitaltwin capability, fully integrated with NVIDIA DSX to implement full digitalisation of AI Factorywhich supports clients to simulate under various scenarios and detect abnormalities incomponents when deploying SST. EnerNeo is well positioned to support the power demandsof AIDC with different scales, with scalable configurations ranging from1.5MW to 4.5MW. Future development roadmap.Backed by global manufacturing bases (China, Thailand, India,Poland), all able to manufacture SST products, and 5000 sqm of testing facility, Sungrow laidout a clear roadmap:indoor standard and UL-certified SST in 2026,13.8kV outdoor versionin 1Q27, 35kV outdoor version with 6-12MW in 2H27. Beyond AIDC, Sungrow also plans toexpand SST application into ultra-fast charging pile/ESSin1H/2H27, then into PV, wind,hydrogen in 2028-30, unlocking a far larger addressable mkt. Sungrow tech moat on SST.Sungrow's R&D initiatives in SST technology can date back to2015. The company rolled out the world's first 35kV/1500V, 6MW SST solution for directgrid-connected PV application in 2018, and built a demonstration project in 2022, whichmaintains a long-term stable operation. In 2024, the company completes the validation of3.3kV, 3.76MW SST solution for direct grid-connected ESS application. Sungrow's SST know-how is underpinned by nearly 30 years of expertise in power electronics, over 10 years ofdedicated SST R&D. With this foundation, mgmt expects continuous R&D investment in next5-10 years will still be essential to continuously upgrade the product with client's specifications. Mgmt also shared insights on production plan of SST, supply chain, comments on peers,progress in AIDC ESS, Sodium battery, views on US policy. Please reach out for details. Alan Lau * | Equity Analyst852 3767 1113 | alan.lau@jefferies.com We would like to thank Wade Wu, employee of Evalueserve Inc., for providing research support services to our preparation of this report. Company Description Sungrow Sungrow Power Supply Co., Ltd was founded in 1997 and is the most bankable PV inverter brand globally, with more than 182GW installedworldwide as of June 2021. It offers a broad product portfolio of PV inverters for utility-scale, commercial, and residential applications, with amarket share of 27% (No. 1 in the world) in 1H21. Company Valuation/Risks Sungrow We are using SOTP valuation, applying PER of 20 x FY2027 EPS + discounting market cap of Sungrow's AIDC ESS and power supply (incl SST) in2030 of RMB162bn by 3 years, to get the company TP ofRMB236.35 per share. Risks include lower-than-expected solar installations and lower-than-expected growth in energy storage system. Analyst Certification: I, Alan Lau, certify that all of the views expressed in this research report accurately reflect my personal views about the subject security(ies) and subjectcompany(ies). I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or viewsexpressed in this research report. Registration of non-US analysts:Alan La