Shenwan Hongyuan Securities·2025-07-18 11:13Investment Rating - The report rates the electric new energy industry as "Overweight" indicating a positive outlook for the sector [3][4]. Core Insights - The report highlights a significant increase in production and stable profitability for leading lithium battery companies, driven by high demand and a reduction in price wars within the lithium battery segment [3][4]. - The photovoltaic (PV) sector is experiencing a recovery in profitability, particularly for high-margin BC components, while other materials face challenges due to price declines [4]. - Wind power installations are on the rise, with expectations for accelerated performance in the second half of the year as demand remains strong [4]. - Investment recommendations focus on three main lines: strong performance companies, supply-side reform opportunities, and new technologies such as solid-state batteries [4]. Summary by Sections Electric Vehicles - In Q2 2025, production across various lithium battery components saw year-on-year increases: ternary cathodes (+15%), iron-lithium cathodes (+53%), anodes (+23%), separators (+36%), electrolytes (+45%), and lithium batteries (+37%) [4]. - The overall profitability in the lithium battery segment is expected to stabilize and recover due to high operating rates among leading companies [4]. Photovoltaics - The PV sector experienced explosive growth in installations, with cumulative new installations exceeding 197GW from January to May 2025 [4]. - Major material companies are still facing losses, but the extent of losses has narrowed significantly in Q2 2025 compared to Q1 [4]. - Aiko Solar is noted for achieving profitability in Q2 2025, marking a significant milestone in the competitive landscape [4]. Wind Power - Wind power installations reached 46.28GW from January to May 2025, with expectations for continued growth in Q2 and Q3 [4]. - The report anticipates that the main machine segment will see improved profitability as orders for wind turbines increase [4]. Investment Recommendations - Key companies to focus on include: 1. Strong performance: CATL, Keda, Zhuhai Guanyu, Hunan YN, and Sungrow [4]. 2. Supply-side reform: Tongwei, Daqo, Aiko, and Longi Green Energy [4]. 3. New technologies: Xiamen Tungsten, Tianqi Lithium, and others [4].