J.P. Morgan initiates coverage of Anker Innovations' H-shares: global brand, replicable category capabilities, and earnings growth support an Overweight rating

Overview

This report initiates coverage of Anker Innovations' H-shares. J.P. Morgan views the company as a smart-device platform built on Chinese engineering capabilities, a global brand, and an extensive channel system. Its core conclusion is that the company's “product innovation–commercialization–value reinforcement” model can be replicated across categories and regions, enabling it to continue gaining share in “shallow-water markets.” The report forecasts a 24% net profit CAGR from 2025 to 2028 and assigns an Overweight rating with a June 2027 target price of HK$150.

Core views

The report first attributes Anker Innovations' growth potential to “shallow-water markets”: markets in which each individual category is worth less than US$80 billion, competition is fragmented, product cycles drive demand, and consumer pain points remain insufficiently addressed, including chargers, wearable devices, and home appliances. According to Anker Innovations' H-share prospectus, the aggregate size of these markets is expected to increase from US$380 billion in 2025 to US$677 billion in 2030, representing a CAGR of 12.2% from 2025 to 2030. J.P. Morgan believes Anker creates differentiated products by identifying demand, developing proprietary technologies, ensuring reliable quality, and providing after-sales service. It then rapidly commercializes these products through third-party platforms such as Amazon and its self-operated online and offline channels, ultimately strengthening brand trust and supporting expansion into new categories. This forms a positive cycle of “product innovation–commercialization–value reinforcement.” The company has served more than 200 million users across more than 180 countries and regions, and this global user and channel base is viewed as an important barrier supporting continued market-share gains. The company's growth does not depend on a single product. In 2025, smart charging and energy storage accounted for 50% of revenue, smart home for 27%, and smart audio and video for 22%; earnings grew at a CAGR of more than 30% from 2015 to 2025. Its R&D system has three levels: exploration of frontier fields, technological modularization and engineering, and market launch, enabling proprietary technologies to be converted into products tailored to consumer needs. J.P. Morgan believes that, together with the company's brand, channels, and quality capabilities, this system can replicate proven success across new products and regions while reducing the impact of volatility in any single category on the overall business. Smart charging is the core business in which the company has already established a leading position. The global mobile charging products market expanded from RMB13.8 billion in 2020 to RMB24.41 billion in 2025, representing a CAGR of 12.1%, and is expected to grow further at a CAGR of 9.7% from 2025 to 2030 to RMB38.75 billion. By 2030, North America is expected to account for 24% of market demand, Europe's share is expected to decline from 23% in 2025 to 22%, and China's share is expected to increase from 21% to 22%. Anker launched the first gallium nitride charger in the consumer charging sector in 2018, ranked second in the global mobile charging market from 2020 to 2024, and was the largest independent mobile charging brand by revenue in both North America and globally. In 2025, it further became the global mobile charging market leader by revenue, with a share of 4.8%. The report attributes its leadership to accumulated expertise in fast-charging, safety, and compatibility technologies, as well as a comprehensive portfolio covering power banks, chargers, and accessories. The GaNPrime 2.0 launched in 2025 supports single-port output of 140W and integrates PowerIQ 5.0 protocol compatibility with ActiveShield 4.0 temperature-control protection. The Prime series offers total output ranging from 100W to 300W and up to 6 ports, while the Nano and Zolo series address portable and multi-scenario needs, respectively. Consumer energy storage represents a faster-growing second pillar. The global consumer energy storage market was worth RMB22.9 billion in 2025 and is expected to grow at a CAGR of 19.6% to RMB56.05 billion in 2030. By then, residential energy storage, portable energy storage, and balcony photovoltaic energy storage are expected to account for 82%, 11%, and 6%, respectively. By region, Europe is expected to contribute 39% of demand in 2030, with a CAGR of 19.6% from 2025 to 2030; North America is expected to contribute 22%, with a CAGR of 23.1%; and other regions are expected to contribute 40%, with a CAGR of 13.3%. Anker launched the Anker SOLIX brand in 2023, with the F, C, E, and X series covering home backup power, outdoor camping, balcony solar-plus-storage, and residential energy storage. The F and C series cover capacities ranging from 192Wh to 53.8kWh. The F3800 Plus supports modular expansion and can be fully charged within two hours under optimal sunlight conditions, while the C1000 Gen 2 features 9 ports, maximum AC output of 1800W, and can be fully charged via AC power within 58 minutes. The Solarbank 3 E2700 Pro uses a plug-and-play design that can save up to 90% of installation time compared with traditional residential storage systems; the modular SOLIX X1 has a maximum capacity of 30kWh. In 2025, the company ranked third globally in portable energy storage by revenue, with a 10.2% share, and first globally in balcony photovoltaic energy storage, with a 14.6% share. Growth in charging and energy storage demand, together with product expansion, drove a 34% revenue CAGR for the segment from 2023 to 2025. Segment revenue was RMB15.4 billion in 2025, accounting for 50% of total revenue, corresponding to sales volume of 94 million units and an average selling price of RMB165 per unit. The company proactively conducted several product recalls, which had a negative short-term financial impact, but the report views them as evidence of the company's emphasis on product quality and responsibility to consumers. J.P. Morgan expects continuous innovation, performance improvements, and stronger brand loyalty to help the business further increase its market share. Smart home is another direction for category expansion. The company launched the eufy brand in 2016, creating three product lines: eufy Security for home security, eufy Clean for home cleaning, and eufyMake for creative printing. The global smart-home market is expected to expand from RMB1.2 trillion in 2025 to RMB1.9 trillion in 2030, representing a CAGR of 10.3% from 2025 to 2030. Smart cleaning and smart security are expected to grow by 14.9% and 11.3%, respectively, over the same period and account for 22% and 13% of the market by 2030. North America, China, and Europe are expected to contribute 31%, 27%, and 24% of demand, respectively, in 2030. The report believes that IoT technology, more personalized experiences, and improved affordability will drive market expansion, creating room for the company to replicate its capabilities from charging into smart home and creative printing. Smart audio and video already accounted for 22% of revenue in 2025 and is also an important component of the multi-category portfolio. Short-term financial performance reflects the time lag between R&D investment and profit realization. Revenue grew 27% year over year in the first quarter of 2026, but net profit declined 5% year over year, mainly because R&D investment increased 45% year over year. J.P. Morgan views this as a strategic investment to strengthen the company's long-term technological foundation and innovation capabilities rather than merely short-term pressure on profits. The report forecasts revenue of RMB39.233 billion, RMB49.180 billion, and RMB58.432 billion in 2026, 2027, and 2028, respectively, corresponding to year-over-year growth of 28.6%, 25.4%, and 18.8%. Adjusted net profit is forecast at RMB3.263 billion, RMB4.134 billion, and RMB4.853 billion, respectively, broadly equivalent to the RMB3.3 billion, RMB4.1 billion, and RMB4.9 billion cited in the report overview, representing a CAGR of 24% from 2025 to 2028. Over the same period, gross margin is expected to increase from 43.9% in 2025 to 45.4% in 2028, while net margin remains around 8.3%. Free cash flow is expected to increase from RMB116 million in 2025 to RMB1.122 billion in 2026, RMB2.627 billion in 2027, and RMB2.859 billion in 2028. The report believes that multi-category expansion and a higher proportion of high-margin products will support sustained earnings growth. In terms of valuation, Anker's H-shares had risen 20% since listing at HK$99.32 on July 2, 2026, compared with a 12% increase in the Hang Seng Index over the same period. The share price rose 11% in July, slightly below the Hang Seng Index's 13% gain, and rose another 9% in August while the Hang Seng Index declined 1%. The report believes this resilience reflects business diversification, earnings visibility, and a relatively attractive valuation. The stock was then trading at approximately 15x 2027E P/E, representing a 14% discount to the peer average. Based on consensus estimates, the A-shares were trading at approximately 19x rolling 12-month forward P/E, close to their historical average of 20x since 2022. Downstream charging and energy storage, cleaning, and audio peers traded at 11–18x 2027E P/E, security and upstream chip peers at 22–28x, and Techtronic and Logitech at 18–20x due to their brands, customer loyalty, and ecosystem advantages, while Xiaomi and Sigenergy traded below 10x. Anker's H-shares had traded at an approximately 20% discount to the A-shares since listing, better than the average H/A discount of 28% among technology stocks. J.P. Morgan derives its June 2027 target price of HK$150 using a 17x rolling 12-month forward P/E. This multiple represents a 17% discount to the historical average P/E of the A-shares and is consistent with the approximately 17% H/A discount indicated by the Hang Seng Stock Connect China AH Premium Index year to date in 2026. It therefore initiates coverage with an Overweight rating.

Analysis framework

The report first defines “shallow-water markets,” which are individually smaller but fragmented, fast-growing, and characterized by numerous consumer pain points. It then analyzes the company's market potential, product technologies, market shares, and commercialization capabilities across smart charging and energy storage, smart home, and smart audio and video. It subsequently assesses the earnings trajectory using historical performance, R&D investment, sales volume and pricing, product mix, and financial-statement forecasts. Finally, it determines the target valuation for the H-shares by considering the historical valuation of the A-shares, the discount between the H-shares and A-shares, and the P/E multiples of upstream, downstream, and global peers.

Methodology notes

• Valuation methodologyP/E and PEG valuation

  Rolling 12-month forward P/E valuation

  The report derives its HK$150 target price by applying a 17x rolling 12-month forward P/E to its earnings forecast and validates the multiple against the historical average of the A-shares, the H/A discount, and peer P/E multiples.

• Industry/sector analysis frameworkSupply-demand framework

  Shallow-water market and segment market-size estimates

  The report uses market size, regional demand structure, and CAGR data from the prospectus to assess demand potential in mobile charging, consumer energy storage, and smart home, and to evaluate the company's opportunities for market-share gains.

• Industry/sector analysis frameworkVolume-price decomposition

  Sales volume and average selling price decomposition

  The report links RMB15.4 billion of smart charging and energy storage revenue in 2025 to sales volume of 94 million units and an average selling price of RMB165 per unit to illustrate the segment's revenue base.

• Competitive and strategic frameworkMoat / competitive advantage

  Positive cycle of product innovation, global channels, and brand trust

  The report believes that proprietary technologies, reliable quality, user experience, global channels such as Amazon, and after-sales service reinforce one another, enabling the company to replicate its success across categories and continuously increase market share.

• Competitive and strategic frameworkValue chain analysis

  Peer comparison across the smart-device value chain

  The valuation comparison includes both upstream fabless chip companies and downstream charging and energy storage, home cleaning, and smart audio manufacturers, reflecting Anker's position in the smart-device value chain after strengthening its integrated R&D capabilities.

Asset mapping & comparison

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

• Anker Innovations H-shares (668.HK)

  The report initiates coverage with an Overweight rating, believing that multi-category growth, a global brand, and channel capabilities will support earnings growth and a valuation rerating.

  Strengths

  Operates across more than 180 countries and regions and serves more than 200 million users; holds leading global shares in mobile charging and balcony photovoltaic energy storage; possesses a tiered R&D system, a multi-brand portfolio, and global online and offline channels.

  Weaknesses

  R&D investment increased 45% year over year in the first quarter of 2026, causing net profit to decline 5% year over year despite 27% revenue growth; the business also depends on third-party e-commerce platforms, suppliers, and delivery systems.

  Comparison

  The report states that its approximately 15x 2027E P/E represents a 14% discount to the peer average, while the H-shares trade at an approximately 20% discount to the A-shares, narrower than the average H/A discount of 28% for technology stocks.

  Risks

  New products may lack competitiveness or innovation, relationships with third-party e-commerce platforms may change, global economic and trade policies remain uncertain, and third-party supply or delivery may be disrupted.

Key data

• Global users and coverageMore than 200 million users across more than 180 countries and regionsDemonstrates the foundation of its global brand and channels
• Shallow-water market sizeUS$380 billion (2025) to US$677 billion (estimated for 2030)Expected CAGR of 12.2% from 2025 to 2030
• 2025 revenue mixSmart charging and energy storage 50%, smart home 27%, smart audio and video 22%Shows the multi-category business portfolio
• Mobile charging market sizeRMB24.41 billion (2025) to RMB38.75 billion (estimated for 2030)Expected CAGR of 9.7% from 2025 to 2030
• Position in the global mobile charging marketRanked first by revenue in 2025, with a market share of 4.8%Previously ranked second from 2020 to 2024
• Consumer energy storage market sizeRMB22.9 billion (2025) to RMB56.05 billion (estimated for 2030)Expected CAGR of 19.6% from 2025 to 2030
• Position in the energy storage marketThird globally in portable energy storage with a 10.2% share; first globally in balcony photovoltaic energy storage with a 14.6% shareCalculated by 2025 revenue
• Smart-home market sizeRMB1.2 trillion (2025) to RMB1.9 trillion (estimated for 2030)Expected CAGR of 10.3% from 2025 to 2030
• Charging and energy storage segment revenueRMB15.4 billionAccounted for 50% of total revenue in 2025, with sales volume of 94 million units and an average selling price of RMB165 per unit
• Operating performance in the first quarter of 2026Revenue increased 27% year over year, while net profit declined 5% year over yearR&D investment increased 45% year over year
• Revenue forecastRMB39.233 billion, RMB49.180 billion, and RMB58.432 billionCorresponding to 2026, 2027, and 2028, respectively
• Adjusted net profit forecastRMB3.263 billion, RMB4.134 billion, and RMB4.853 billionCorresponding to 2026, 2027, and 2028, respectively; CAGR of 24% from 2025 to 2028
• Gross margin forecast43.9% (2025) to 45.4% (estimated for 2028)The report expects an improved product mix to drive higher gross margin
• Share-price performance since listing+20%From the July 2, 2026 listing to the report date, compared with a 12% increase in the Hang Seng Index over the same period
• Target valuation17x rolling 12-month forward P/EDerives a June 2027 target price of HK$150, representing a 17% discount to the historical average P/E of the A-shares

Impact & implications

J.P. Morgan believes Anker Innovations has evolved from a single-category charging-products company into a global smart-device platform spanning charging and energy storage, smart home, and smart audio and video. Fast-growing segments, a replicable R&D and commercialization system, and global channels collectively support market-share expansion. Although increased R&D investment is weighing on short-term profits, an improving product mix and the scaling of new categories are expected to drive sustained earnings growth from 2025 to 2028 and provide a foundation for a valuation rerating of the H-shares.

Risks

• Failure to continuously launch competitive and innovative products could weaken market-share growth and earnings expectations.
• Disruptions or changes in relationships with third-party e-commerce platforms could affect global sales and product distribution.
• Uncertainty in the global economic environment and trade relationships or policies could affect cross-border operations.
• Disruptions or delays in third-party supply or delivery could affect product availability and commercialization progress.