Innovation and Global Expansion Drive Anker Innovations' Growth; Both A-shares and H-shares Rated Buy

Overview

The report initiates coverage of Anker Innovations' H-shares and resumes coverage of its A-shares, viewing the company as growing into an important leader in the global consumer electronics sector. Future growth will mainly come from share gains in existing categories, expansion into new categories, and market and channel expansion. Goldman Sachs expects the company's revenue to increase from RMB30.514 billion in 2025 to RMB56.787 billion in 2028, and net profit from RMB2.545 billion to RMB5.108 billion.

Core views

Mature categories can still gain share through product upgrades and expansion in non-US markets, while energy storage is expected to become the fastest-growing business. Through sustained R&D, brand premium and global channels, the company has created a positive feedback loop. Although competitors can follow product specifications at low prices, it is more difficult for them to replicate its brand recognition and offline distribution depth. Short-term raw material price increases will weigh on 2026 gross margin, while longer-term product mix optimization, energy storage economies of scale and operating leverage are expected to drive net margin recovery.

Analysis framework

The report analyzes revenue growth by category, regional and channel structure, competitive advantages, R&D investment, cost pass-through and margin trends, and uses earnings forecasts, valuation discounts versus comparable companies and sensitivity analysis to derive target prices and growth judgments.

Methodology notes

• Earnings ForecastSegment CAGR Forecast

  Breaking down revenue growth by product category, channel and region

  The report separately forecasts the 2025-2028 CAGR for charging, smart home, audio/video and energy storage businesses, and combines share gains, rising penetration and market expansion to estimate overall revenue and profit.

• Valuation methodsP/E Valuation Method

  Target P/E multiple and cost of equity discounting

  The A-share target price is based on 2028 EPS multiplied by a 19x P/E multiple and discounted to mid-2027 using a 9.5% cost of equity; the H-share target price applies a 13% H/A valuation discount based on the A-share valuation.

• Scenario AnalysisSensitivity Analysis

  Changes in penetration rate, market share, cost increases and pass-through rate

  The report tests the impact of European balcony solar-storage penetration and the company's share on revenue growth, and analyzes the impact of 2026 cost inflation and cost pass-through rate on gross margin.

Asset mapping & comparison

Structured mapping from thesis to named assets (strengths, weaknesses, peers, risks).

• 300866.SZ

  Anker Innovations A-shares

  Strengths

  Strong innovation capability, brand premium, broad global channel coverage, and incremental growth from energy storage and non-US markets.

  Weaknesses

  Raw material cost increases in 2026 will put pressure on gross margin, while higher R&D investment limits short-term operating margin expansion.

  Comparison

  Compared with competitors in low-priced charging products, the company has higher sales volume, number of reviews, user ratings and price premium; in the cleaning appliance business, it lags behind leading companies such as Roborock.

  Risks

  Deterioration in macroeconomic conditions and trade policies, failed product launches or safety incidents, intensified competition, margin erosion and cost inflation.

• 0668.HK

  Anker Innovations H-shares

  Strengths

  Shares the same fundamentals as the A-shares and benefits from growth in the energy storage business, global market expansion and channel diversification.

  Weaknesses

  Valuation is affected by the H/A discount, and earnings also face short-term pressure from costs and R&D investment.

  Comparison

  The target price applies a 13% valuation discount versus the A-shares, referencing the average discount of comparable A/H-listed consumer companies over the past six months.

  Risks

  In addition to the company's operating risks, changes in the H/A valuation discount and differences in market liquidity should also be monitored.

Key data

• 2025-2028 Revenue CAGR23%Revenue is expected to increase from RMB30.514 billion to RMB56.787 billion.
• 2025-2028 Net Profit CAGR26%Net profit is expected to increase from RMB2.545 billion to RMB5.108 billion.
• Energy Storage Revenue CAGR37%Driven by higher penetration, product innovation and market expansion in Europe and Australia.
• Revenue CAGR by CategoryMobile charging 13%; smart home 27%; audio and video 23%The forecast period is 2025 to 2028.
• Expected Gross Margin in 202644.6%Down 50 bps year-on-year, mainly due to price increases for battery cells and memory chips.
• Net Margin Forecast2025 8.3%; 2026 8.2%; 2028 9.0%Expected to recover after short-term pressure as product mix improves and economies of scale emerge.
• R&D Expense Ratio2025 9.5%; 2028 10.7%The company plans to continue increasing R&D investment to support innovation and product mix upgrades.
• Global Channel CoverageMore than 180 countries and regionsOnline channels contribute about 70% of revenue in 2025.
• Amazon Revenue Contribution2020 62%; 2025 52%Platform dependence is declining, while the shares of third-party platforms and self-operated channels are rising.
• Self-operated Website Revenue Contribution2025 10%Sales increased by about 14 times from 2020 to 2025.
• A-share Target PriceRMB146Represents 19.7% upside versus the share price of RMB122.01 on July 31, 2026.
• H-share Target PriceHK$149Represents 35.7% upside versus the share price of HK$109.80 on July 31, 2026.

Impact & implications

If product innovation, rising energy storage penetration, and regional and channel diversification progress as expected, the company is likely to achieve faster-than-industry growth and maintain its brand premium. Cost pressure in 2026 may cause short-term earnings volatility, but locked-in procurement prices, advance stocking, product price increases and streamlining of low-gross-margin products are expected to cushion the impact; margin recovery after 2027 will be an important condition for valuation realization.

Risks

• Macro demand weaker than expected or deterioration in trade policy.
• Failed new product launches, product recalls or safety issues damaging the brand.
• Intensifying competition among Chinese consumer electronics companies triggering price and margin pressure.
• Continued increases in input costs such as lithium-ion battery cells and memory chips.
• Channel or regional expansion falling short of expectations, or issues in partnership management.
• Changes in European energy storage policies, subsidies or electricity pricing mechanisms leading to lower-than-expected demand.

What to watch

• Whether 2026 gross margin contracts only moderately and whether the cost pass-through rate can approach 90%.
• The pace of demand release for balcony solar-storage systems after the Netherlands cancels its net metering policy from 2027.
• The contribution of European markets outside Germany to balcony solar-storage revenue.
• The boost to residential energy storage sales from Australian subsidy policies, 3GWh channel partnerships and localized products.
• Whether the energy storage business can achieve a 37% revenue CAGR from 2025 to 2028.
• Whether Amazon's revenue contribution continues to decline, and whether self-operated and offline channels can sustain growth.
• Whether the rising R&D expense ratio can translate into product premium, gross margin improvement and cross-business technology synergies.
• The realization of A-share and H-share prices relative to their target prices and changes in the H/A valuation discount.