Bank of China Securities·2025-04-14 00:39Investment Rating - The industry investment rating is "Outperform the Market" [1][35]. Core Insights - The report highlights a sustained high demand for new energy vehicles, with March sales reaching 1.237 million units, a year-on-year increase of 40.1% [2][23]. - The photovoltaic sector remains optimistic about demand growth in the U.S. and emerging economies, with a focus on cost reduction and efficiency improvements in manufacturing [1][24]. - The report emphasizes the potential for profitability recovery in wind power and suggests prioritizing investments in turbine and component sectors benefiting from offshore wind projects [1][24]. - The solid-state battery technology is expected to achieve mass production by 2027, presenting opportunities for companies involved in battery, materials, and equipment [1][24]. - The ongoing push for hydrogen energy development is highlighted, with recommendations to focus on companies with cost and technological advantages in electrolyzer production and hydrogen infrastructure [1][24]. Summary by Sections Industry Dynamics - The report notes that the domestic lithium battery market is experiencing price stability, while the photovoltaic market is facing price adjustments due to declining downstream demand [14][16]. - The report mentions that the average price of P-type M10 battery cells remains stable at 0.31 CNY per watt, with expectations of price pressures in the near future [16][19]. Company Performance - Companies such as BYD are projected to achieve a net profit of 8.5 to 10 billion CNY in Q1 2025, reflecting a year-on-year growth of 86.04% to 118.88% [26]. - Hewei Electric reported a net profit of 105 million CNY in Q1 2025, a year-on-year increase of 90.35% [26]. - The report also highlights that several companies, including Foster and Zhongwei, are experiencing declines in net profits for 2024, indicating mixed performance across the sector [26].