Zhong Guo Neng Yuan Wang·2025-10-14 00:54Core Viewpoint - The report from Dongwu Securities highlights a positive outlook for the growth of new orders for power and energy storage cell equipment manufacturers, driven by the recovery in demand for power batteries and energy storage cells starting from Q2 2024 [1][3]. Group 1: Market Dynamics - From 2022 to Q2 2024, the expansion of battery manufacturers has significantly slowed due to supply and demand issues in the power battery sector, leading to pressure on new orders for equipment manufacturers [1][3]. - Since Q2 2024, there has been a rapid increase in sales of new energy vehicles, resulting in a rebound in power battery installation volume and an expansion in demand for energy storage cells [1][3]. - Major battery manufacturers such as CATL and BYD have seen their capacity utilization rates approach full capacity, prompting a restart of capital expenditures since Q4 2024 [1][3]. Group 2: Export Regulations - The Ministry of Commerce and the General Administration of Customs announced that certain lithium battery materials and core manufacturing equipment will be subject to export controls, effective from October 9 [2]. - The new export control does not equate to a ban; companies can still engage in export activities through a licensing application process, benefiting compliant enterprises with global operational experience [2]. Group 3: Competitive Landscape - Chinese lithium battery equipment manufacturers are positioned competitively on a global scale, with key players in overseas expansion including Japanese and Korean battery manufacturers, as well as new entrants from Europe and the U.S. [2]. - The report expresses optimism about the overseas expansion of Chinese battery manufacturers and automotive companies, highlighting that domestic equipment manufacturers like Xian Dai and Hanke possess global competitiveness [2]. Group 4: Investment Recommendations - The report recommends focusing on full-line equipment suppliers such as Xian Dai Intelligent, laser welding equipment manufacturers like Lianying Laser, and formation and capacity equipment suppliers like Hanke Technology [3]. - Other companies to watch include fiberization equipment manufacturers, roller press suppliers, and various electrode equipment manufacturers [3].