Bank of China Securities·2025-05-11 11:04Investment Rating - The report maintains an "Outperform" rating for the power equipment and new energy industry [1]. Core Insights - Lithium carbonate prices continue to decline, with a significant drop of over 1,800 RMB/ton after the May Day holiday, now around 65,000 RMB/ton [2][23]. - In the photovoltaic sector, China's first-quarter installations showed rapid growth, and demand from the U.S. and emerging economies remains optimistic [1]. - The central economic work conference emphasizes the need for comprehensive rectification of "involution" competition, suggesting stronger supply-side reforms in the photovoltaic industry [1]. - Wind power projects are expected to progress steadily, with demand improving by 2025, potentially restoring profitability in the complete machine and component sectors [1]. - The government report highlights the strong development of smart connected new energy vehicles, with annual sales expected to maintain high growth, driving demand for batteries and materials [1]. - Solid-state battery industrialization is anticipated to continue, with mass production expected by 2027, benefiting companies involved in batteries, materials, and equipment [1]. - The domestic push for electricity system reform is likely to accelerate the construction of ultra-high voltage and main grid projects, maintaining high demand for related grid equipment [1]. - Hydrogen energy policies are promoting industrial development, with applications in green hydrogen and chemicals expected to open up new opportunities [1]. Summary by Sections Market Overview - The power equipment and new energy sector saw a 4.02% increase this week, outperforming the Shanghai Composite Index [10]. - The lithium battery index rose by 6.90%, while the nuclear power sector increased by 5.02% [13]. Key Industry Information - SNE Research reported that global power battery installation reached 221.8 GWh in Q1 2025, a year-on-year increase of 38.8% [2][23]. - The China Passenger Car Association estimates that wholesale sales of new energy passenger vehicles in April reached 1.14 million units, a 42% year-on-year increase [23]. Company Developments - Ningde Times became the first company to pass the new national standard for electric vehicle batteries [23]. - Longpan Technology signed a strategic cooperation agreement for the procurement of lithium iron phosphate materials, with a total sales amount expected to exceed 5 billion RMB [2].