CCSC(SH:601375) Zhongyuan Securities·2025-08-04 01:05Core Insights - The report highlights the ongoing recovery of the Chinese economy, driven by consumption and investment, with a stable upward trend in the A-share market supported by policy and capital inflows [13][14][15]. Domestic Market Performance - The Shanghai Composite Index closed at 3,559.95, down 0.37%, while the Shenzhen Component Index closed at 10,991.32, down 0.17% [3]. - The average P/E ratios for the Shanghai Composite and ChiNext are 14.66 and 40.72, respectively, indicating a suitable environment for medium to long-term investments [13][14]. International Market Performance - Major international indices, including the Dow Jones and S&P 500, experienced declines of 0.67% and 0.45%, respectively, reflecting a cautious global market sentiment [4]. Industry Analysis Photovoltaic Industry - The photovoltaic index rebounded significantly in July, with a 9.73% increase, outperforming the CSI 300 index, driven by policies addressing low-price competition [18][19]. - The domestic new photovoltaic installed capacity in June was 14.36 GW, a year-on-year decline of 38.45%, while the cumulative installed capacity for the first half of the year reached 212.21 GW, a 107.07% increase [19]. - The report suggests that the photovoltaic industry is expected to see improved supply-demand dynamics as policies for capacity reduction are implemented [20]. New Energy Vehicle Industry - The global sales of new energy vehicles are projected to reach 20 million units by 2025, with China maintaining a leading position, accounting for 65% of global sales in 2024 [23]. - The report emphasizes the comprehensive development of the new energy vehicle industry chain in Henan Province, which has seen significant growth and is now among the top ten in production nationwide [24]. New Energy Storage Industry - The new energy storage market is experiencing rapid growth, with a projected installation of 300 million kW by 2025, driven by advancements in lithium-ion battery technology and supportive government policies [27][30]. - The report outlines the competitive landscape of the energy storage system integration market, highlighting key players and the importance of technological advancements [28]. Engineering Machinery and Robotics - The engineering machinery sector showed a 7.35% increase in July, outperforming the CSI 300 index, with strong performance in laser processing equipment and engineering machinery [32][33]. - The report recommends focusing on companies with stable earnings and high dividend yields in the engineering machinery sector [33]. Power and Utilities Sector - The power and utilities index underperformed the market, with a 2.12% increase in July, while the overall electricity demand showed a year-on-year growth of 5.4% in June [35][36]. - The report maintains a "stronger than market" investment rating for the power and utilities sector, emphasizing the importance of stable earnings from large hydropower companies [36].