JPMorgan identified nine top renewable energy stocks in China for the second half of 2026, favoring wind, solar, and nuclear power leaders following a review of first-quarter results.
"The bank is positive on SUNGROW POWER and DEYE, supported by strong demand for energy storage systems and the AIDC energy storage theme," the JPMorgan report stated, highlighting a key growth driver.
The bank's "Overweight" list includes wind giant GOLDWIND (02208.HK), polysilicon maker GCL TECH (03800.HK), and nuclear utility CGN POWER (01816.HK). In contrast, it assigned "Underweight" ratings to LONGI GREEN ENERGY (601012.SH) and TONGWEI (600438.SH) due to the ongoing industry downcycle and valuation concerns.
The report signals a strategic preference for companies with strong export potential and cost advantages. Investors will likely watch for a potential re-rating of favored names as capital rotates toward firms aligned with JPMorgan's favored themes of wind exports and energy storage for AI data centers.
In the upstream wind sector, JPMorgan maintained its preference for companies exposed to exports and the offshore wind market. It reiterated "Overweight" ratings on GOLDWIND (02208.HK) and ORIENT WIRES & CABLES (603606.SH). Conversely, MINGYANG SMART ENERGY (601615.SH) was kept at "Underweight" due to a weaker execution track record.
For energy storage, SUNGROW POWER (300274.SZ) was named the top pick, with the bank anticipating more positive catalysts in the second half of 2026 as AI data center energy storage deployment accelerates. DEYE (605117.SH) is also favored as a key beneficiary of regional energy security development.
JPMorgan remains selective on solar manufacturers, preferring players with cost leadership and attractive valuations. It favors GCL TECH (03800.HK) and DAQO New Energy Corp. (DQ.US), both rated "Overweight." The bank sees value in ARCTECH (688408.SH) for patient investors, expecting earnings to recover as shipments normalize.
Among power producers, the bank highlighted differing tariff policies. It assigned an "Overweight" rating to nuclear operator CGN POWER (01816.HK), which benefits from stable tariff mechanisms. Hydropower firm YANGTZE POWER (600900.SH) was also rated "Overweight," cited as a top defensive yield investment. In contrast, wind power producers CHINA LONGYUAN (00916.HK) and DATANG RENEW (01798.HK) received "Neutral" ratings, as their tariffs are more affected by market-oriented reforms.
The report's recommendations are likely to influence investment flows within China's renewable sector, favoring firms with strong export order books and exposure to the high-growth energy storage market. The bank's cautious stance on certain solar and wind names underscores the persistent pricing and policy pressures within those sub-sectors.
This article is for informational purposes only and does not constitute investment advice.
