Core Viewpoint - The stock of Beijing Dangsheng Technology Co., Ltd. experienced a decline of 5% on November 10, trading at 66.48 CNY per share with a total transaction volume of 1.554 billion CNY and a turnover rate of 4.49%, resulting in a total market capitalization of 36.185 billion CNY [1] Company Overview - Beijing Dangsheng Technology Co., Ltd. was established on June 3, 1998, and went public on April 27, 2010. The company is primarily engaged in the research, production, and sales of lithium-ion battery cathode materials and high-end intelligent equipment [1] - The revenue composition of the company's main business includes: - Multi-materials: 60.83% - Lithium iron phosphate (manganese) and sodium battery cathode materials: 29.37% - Lithium cobalt oxide: 7.44% - Intelligent equipment: 1.55% - Other businesses: 0.82% [1] Fund Holdings - According to data from the top ten holdings of funds, one fund under Dongzheng Asset Management has a significant position in Dangsheng Technology. The fund "Oriental Red CSI 500 Index Enhanced Initiation A" (021175) held 16,200 shares in the third quarter, accounting for 1.27% of the fund's net value, ranking as the ninth largest holding [2] - The fund has a current scale of 32.8388 million CNY and has achieved a return of 16.7% year-to-date, ranking 3125 out of 4217 in its category. Over the past year, it has returned 9.39%, ranking 3015 out of 3918 [2] - The fund manager, Xu Xijia, has been in position for 6 years and 105 days, with the fund's total asset size at 7.023 billion CNY. The best return during his tenure was 55.4%, while the worst was -0.5% [2]

Summary of Key Points from the Conference Call Industry Overview - **Industry**: China Industrials - **Focus**: Growth at reasonable price in the industrial sector Company Ratings and Financial Metrics - **LOPAL-H (2465.HK)**: - Rating: Buy - Market Cap: 7,374 million RMB - Share Price: 11.75 RMB - Price Target: 15.00 RMB (28% upside) - P/BV: 2.5x - ROE: 2% (2025E), 12% (2026E), 17% (2027E) - PE: 105x (2025E), 19x (2026E), 12x (2027E) - Net Profit: 76 million RMB (2025E), 421 million RMB (2026E), 649 million RMB (2027E) [2][2][2] - **CSSC (600150.SH)**: - Rating: Buy - Market Cap: 160,560 million RMB - Share Price: 35.90 RMB - Price Target: 45.80 RMB (28% upside) - P/BV: 1.9x - ROE: 10% (2025E), 12% (2026E), 14% (2027E) - PE: 26x (2025E), 15x (2026E), 11x (2027E) - Net Profit: 10,198 million RMB (2025E), 18,527 million RMB (2026E), 24,019 million RMB (2027E) [2][2][2] - **Hongfa (600885.SH)**: - Rating: Buy - Market Cap: 44,478 million RMB - Share Price: 30.47 RMB - Price Target: 36.50 RMB (20% upside) - P/BV: 3.9x - ROE: 18% (2025E), 19% (2026E), 18% (2027E) - PE: 23x (2025E), 20x (2026E), 17x (2027E) - Net Profit: 1,921 million RMB (2025E), 2,247 million RMB (2026E), 2,556 million RMB (2027E) [2][2][2] Comparative Analysis - **Electric Components Sector**: - Hongfa's P/E ratio is lower than the sector average of 28x for 2025E, indicating potential undervaluation [4][4]. - **Battery Supply Chain**: - Gotion (002074.SZ) has a market cap of 83 billion RMB with a PE of 26x for 2025E, while CATL (300750.SZ) has a significantly higher market cap of 1,793 billion RMB with a PE of 26x for 2025E [5][5]. Market Trends and Insights - **Solid-State Battery (SSB) Developments**: - The SSB index has shown significant rallies driven by government subsidies and new product launches, indicating a growing interest and investment in this technology [7][8]. - **Battery Materials Pricing**: - Limited pricing opportunities are expected in the battery materials sector, with production schedules closely correlated with battery index performance [10][10]. Additional Insights - **Potential Risks**: - Companies like Ronbay (688005.SH) and Yunnan Energy (002812.SZ) are rated Neutral, indicating potential risks in their financial performance with significant declines in net profit projections [2][2][2]. - **Sector Performance**: - The overall performance of the industrial sector is influenced by macroeconomic factors and government policies, which could impact investment decisions [1][1]. This summary encapsulates the key points from the conference call, focusing on company ratings, financial metrics, market trends, and potential risks within the China industrials sector.

Investment Rating - The report maintains an "Overweight" rating for the basic chemical industry [4] Core Insights - The global resonance in energy storage demand is expected to lead to explosive growth in storage needs by 2025, driven by domestic pricing reforms and international policies [2][15] - The supply chain for energy storage is heavily concentrated in China, which is projected to benefit significantly from the accelerating global storage cycle [2][28] - The current lithium battery materials cycle is characterized by structural shortages, leading to a new round of price increases [3][52] Summary by Sections 1. Energy Storage: Global Resonance and Demand Surge - Energy storage is a crucial tool for energy regulation, enhancing the predictability and controllability of renewable energy sources [8] - Strong policy support is anticipated to drive an 80% year-over-year increase in global energy storage demand by 2025 [15] - China is expected to dominate the global energy storage market, with over 93% market share in battery cells and 76% in storage systems by 2025 [28][31] 2. AIDC Energy Storage: NVIDIA's Leadership and Future Demand - NVIDIA's white paper emphasizes the necessity of integrating energy storage into power architectures, projecting a significant increase in demand for energy storage in data centers by 2030 [2][32] - The global demand for AIDC energy storage is expected to rise from 16.5 GWh in 2024 to 209.4 GWh by 2030, indicating explosive growth [47][50] 3. Energy Storage Materials: Structural Shortages and Price Increases - The current lithium battery cycle is driven by upstream demand, particularly for energy storage, leading to saturation in orders and accelerated production at battery manufacturers [3][52] - Lithium hexafluorophosphate is experiencing a new price surge, with prices rising significantly from previous lows, indicating strong price elasticity [52][53] - Phosphate iron lithium is facing structural shortages due to high demand, with production increasing by 70.2% year-over-year [3][52]

Core Insights - The company, Dangsheng Technology, has filed an international patent application for a new cathode active material and its preparation method, with the application number PCT/CN2024/096116, set to be published internationally on November 6, 2025 [1]. Group 1: Patent Information - The patent is titled "Cathode Active Material and Its Preparation Method, Cathode Sheet, Battery, and Electric Equipment" [1]. - This marks the 12th international patent application filed by the company this year, representing a 100% increase compared to the same period last year [3]. Group 2: R&D Investment - In the first half of 2025, the company invested 223 million yuan in research and development, which is a year-on-year increase of 9.92% [3].

Core Viewpoint - The breakthrough and mass production of solid-state battery technology present a common challenge for the entire industry chain, requiring advancements in battery design, manufacturing processes, and key materials [1] Company Summary - The company has made significant progress in solid-state battery technology, focusing on multiple series of solid-state electrolytes and high-nickel multi-materials, as well as high-capacity lithium-rich manganese-based materials [1] - The company is deeply integrated with leading solid-state battery enterprises on core projects and has achieved bulk supply of over 20 tons, positioning itself at the forefront of the industry in terms of comprehensive technical performance [1]

Core Viewpoint - The company is focusing on the research and production of key materials for solid-state batteries, achieving significant progress in this area [1] Group 1: Product Development - The company has achieved batch supply of over 20 tons of ultra-high nickel multi-materials and ultra-high capacity lithium-rich manganese-based materials for all-solid-state batteries [1] - The semi-solid cathode materials have been applied in fields such as drones, eVTOL, and humanoid robots, with cumulative shipments reaching the thousand-ton level [1] Group 2: Production Capacity - The company is advancing a project for the industrialization of solid-state electrolytes with an annual production capacity of 3,000 tons, and the products have received certification and adoption from several key downstream customers [1] - Future production capacity for solid lithium battery materials will be steadily developed based on customer demand, aiming to jointly promote the mass production process of all-solid-state batteries [1]

Core Viewpoint - The company is advancing its solid electrolyte production project with an annual capacity of 3,000 tons, having received certification and adoption from several key downstream customers [1] Group 1 - The company is working on the industrialization of solid electrolytes [1] - The solid electrolyte product has been certified and adopted by multiple key customers [1] - The company plans to steadily advance the production capacity of solid lithium battery materials based on customer demand [1] Group 2 - The company aims to jointly promote the mass production process of all-solid-state batteries [1]

Company Overview - Beijing Dangsheng Technology Co., Ltd. is located in Fengtai District, Beijing, and was established on June 3, 1998. The company was listed on April 27, 2010. Its main business involves the research, production, and sales of lithium-ion battery cathode materials and high-end intelligent equipment [1] - The revenue composition of the company includes: diversified materials 60.83%, lithium iron phosphate and sodium battery cathode materials 29.37%, lithium cobalt oxide 7.44%, intelligent equipment 1.55%, and other businesses 0.82% [1] Financial Performance - For the period from January to September 2025, the company achieved operating revenue of 7.399 billion yuan, representing a year-on-year growth of 33.92%. The net profit attributable to shareholders was 503 million yuan, with a year-on-year increase of 8.30% [2] - Since its A-share listing, the company has distributed a total of 1.265 billion yuan in dividends, with 821 million yuan distributed over the past three years [3] Stock Performance - As of November 7, the company's stock price increased by 2.01%, reaching 69.53 yuan per share, with a trading volume of 9.67 billion yuan and a turnover rate of 2.80%. The total market capitalization is 37.845 billion yuan [1] - Year-to-date, the company's stock price has risen by 73.48%, with a 0.51% increase over the last five trading days, a 4.98% increase over the last 20 days, and a 66.38% increase over the last 60 days [1] Shareholder Structure - As of September 30, 2025, the number of shareholders is 86,400, a decrease of 0.37% from the previous period. The average number of tradable shares per person is 5,856, an increase of 0.37% [2] - Among the top ten circulating shareholders, Hong Kong Central Clearing Limited is the third-largest shareholder with 13.1548 million shares, an increase of 8.7215 million shares from the previous period. Other notable shareholders include E Fund's ChiNext ETF and Southern CSI 500 ETF, with varying changes in their holdings [3]

Group 1 - The core point of the news is that Dangsheng Technology's stock price increased by 5.06% to 68.54 CNY per share, with a trading volume of 1.437 billion CNY and a turnover rate of 4.23%, resulting in a total market capitalization of 37.306 billion CNY [1] - Dangsheng Technology, established on June 3, 1998, and listed on April 27, 2010, specializes in the research, production, and sales of lithium-ion battery cathode materials and high-end intelligent equipment [1] - The company's main business revenue composition includes: diversified materials 60.83%, lithium iron phosphate (manganese) and sodium battery cathode materials 29.37%, lithium cobalt oxide 7.44%, intelligent equipment 1.55%, and other businesses 0.82% [1] Group 2 - Red Tower Hongtu Fund has a significant holding in Dangsheng Technology, with the Hongtu Stable Selection Mixed A Fund (009817) holding 11,700 shares, accounting for 4.45% of the fund's net value, making it the second-largest holding [2] - The Hongtu Stable Selection Mixed A Fund was established on October 16, 2020, with a latest scale of 8.5229 million CNY, achieving a year-to-date return of 12.01% and a one-year return of 14.61% [2] - The fund manager, Yang Xingfeng, has been in position for 2 years and 278 days, with the fund's total asset scale at 517 million CNY, achieving a best return of 20.23% and a worst return of -1.59% during his tenure [3]

Group 1 - The battery ETF (561910) has seen a rise of 1.14% as of November 6, with significant gains from constituent stocks such as Keda, Funeng Technology, and others [1] - The ETF has attracted over 60 million in net inflows over the past two days, indicating strong investor interest [1] - China's new energy storage capacity is projected to exceed 100 million kilowatts by September 2025, reflecting rapid growth and technological advancements in the sector [1] Group 2 - The European large-scale energy storage market is experiencing accelerated growth, with project returns increasing to 10%-15% due to frequent negative electricity prices [2] - By 2030, Europe is expected to add 165 GWh of new storage capacity, with a compound annual growth rate of 40% from 2024 to 2030, representing a market opportunity of 170 billion [2] - The U.S. energy storage capacity is forecasted to reach 76 GWh by 2026, with a year-on-year increase of nearly 44%, driven by data center contributions [2] Group 3 - Companies like Sungrow and Keda are actively expanding their presence in the AI Data Center (AIDC) industry chain [3] - The battery ETF (561910) tracks the CSI Battery Index, covering the entire industry chain from materials to equipment recycling, with top constituents including Ningde Times and Yiwei Lithium Energy [4] Group 4 - Keda has announced that the rapid development of AI technology has increased the demand for computing power, leading to growth in its data center segment [5] - Sungrow has established a dedicated AIDC division to enhance its strategic positioning, aiming to transition from a "device supplier" to an "energy system service provider" [5]