Yangtze Securities: The safety margin of Suntech Power is sufficient, maintaining a "buy" rating.

A research report from Yangtze Securities pointed out that since 2023, Sunshine Power has maintained strong performance for 2-3 years and exceeded expectations multiple times. It is believed that the logic of the company's valuation repair will gradually become clear, and its elasticity may be much higher than the growth of performance. With the worries of profit decline and trade barriers gradually fading or being eliminated, from 2025H2 to 2026, the company will gradually enter the window of valuation repair. As for trade barriers, there is uncertainty in US treasury policy, but the company will eventually find a stable way to penetrate the US market. With equal tariffs and the Big Beautiful Act now in effect, it is expected that after the buffer period of about half a year, the foreign entity ban will be formally implemented in 2026, and it is highly probable that Sunshine Power's US market penetration plan will become clear in 2026H2, making the company's US profit expectations clearer and valuation pressure relieved. With excellent product quality and a strong position in the industrial and commercial photovoltaic inverter channel, Sunshine Power will fully benefit from the boom in the industrial and commercial energy storage market, adding incremental growth to the company's performance. We expect the company to achieve a net profit attributable to shareholders of 13-14 billion yuan in 2025-2026, with a corresponding PE ratio of 12-11 times, providing sufficient margin of safety. We maintain a "buy" rating.