J.P. Morgan: China's renewable energy stocks rebound on fund flows; opportunities still favor storage, offshore wind and exports

Does the recent rebound signal an industry recovery?

In the 7 days leading up to 3 November 2026, Deye and Sungrow shares both rebounded by more than 10%, while the Shanghai Composite fell 1%; on 4 November, the A-share solar index rose 5%, storage integrators gained 4%–16%, while the Shanghai and Shenzhen indices rose 1% and 2%, respectively.
JPMorgan attributes the recent performance to fund participation, sector rotation and management's upbeat comments on storage shipments in 2027, and explicitly says the rebound was driven by fund flows, not a broad recovery across the sector.

Widening spreads between peak and off-peak European power prices have improved the economics of storage projects, supporting demand; management's upbeat comments on 2027 shipments, particularly its outlook for Europe, have also supported recent share-price performance.
JPMorgan prefers Deye, citing better margin and earnings visibility over the next two quarters and lower near-term risk of consensus earnings downgrades. Differences in revenue recognition for distributed and large-scale projects are one reason the companies have different near-term earnings visibility.
Sungrow was downgraded by JPMorgan from “Overweight” to “Neutral” because of weaker near-term earnings visibility; therefore, expectations for industry shipment growth do not mean that companies will deliver uniform short-term earnings performance.

The third-quarter review showed that Dongfang Cable's results were affected by a one-off impairment, but that, excluding this factor, an improved product mix supported underlying earnings; Goldwind continued to offer exposure to overseas growth even as domestic onshore wind demand remained weak. JPMorgan therefore sees offshore wind, exports and domestic onshore wind as being at different points in the cycle.
Dongfang Cable represents offshore wind, while Goldwind and Dajin Heavy Industry represent export opportunities. However, after its rise in September, Dajin Heavy Industry lacks a new-order catalyst, and near-term order visibility remains key; JPMorgan's long-term view is supported by the expected acceleration in offshore wind installations in Europe.

Longyuan Power's attributable earnings fell sharply year over year in the first nine months of 2026, but its shares rose 12% in the 7 days leading up to 3 November. JPMorgan's improvement thesis for 2027 is that reduced renewable power curtailment will lift utilization, supported by slower growth in new renewable capacity and faster investment in grids and storage.
CGN Power's net profit rose 36% year over year in the third quarter of 2026, but its share-price response was muted because the recovery in generation had already become apparent in earlier operating data and had driven a previous re-rating. JPMorgan is positive on the contribution from new units in 2027 and potential improvements to the power-pricing mechanism.

JPMorgan says the solar supply chain overall remained weak in the third quarter of 2026, with no evidence yet of a sustained recovery; low valuations therefore present opportunities in individual companies, not proof that industry supply and demand have reversed.
The bank views Xinyi Solar, Flat Glass, Daqo New Energy and GCL Technology as cost leaders, and believes their valuation appeal would become more pronounced if prices and supply discipline improve; near-term fundamentals may still come under pressure, while these companies offer better downside protection and greater upside potential when the industry recovers.