Soochow Securities·2026-03-09 01:28Investment Rating - The report maintains an "Accumulate" rating for the power equipment industry [1] Core Views - The power equipment industry is experiencing high demand due to electricity shortages and a continuous positive outlook for energy storage [1] - The report highlights significant growth in energy storage projects, particularly in regions like Inner Mongolia, with nearly 100GWh of projects underway [3] - The report emphasizes the increasing utilization of new energy storage technologies and the supportive policies from the government, which are expected to drive growth in the sector [3] Industry Trends - The energy storage sector is projected to see over 60% growth in installed capacity in 2026, with a compound annual growth rate of 30-50% from 2027 to 2029 [3] - The report notes that the domestic electric vehicle market is expected to stabilize, with a projected 5% growth in 2026 and a significant increase in exports [3] - The report indicates that the demand for lithium batteries remains strong, with prices for lithium carbonate and other materials showing fluctuations [3] Company Performance - Major companies in the sector are showing strong revenue growth, with Daikin Heavy Industries reporting a 63.34% increase in revenue year-on-year [3] - Companies like Ningde Times and BYD are highlighted as leaders in the battery and energy storage markets, with significant investments and expansions planned [3] - The report mentions various companies' strategic partnerships and projects, such as Ningde Times' collaboration with global mining giants and the expansion of production capacities [3] Investment Strategy - The report recommends focusing on leading companies in the energy storage and lithium battery sectors, such as Ningde Times, BYD, and others, due to their strong growth potential and market leadership [3] - It suggests that the energy storage market will continue to grow, driven by both domestic and international demand, particularly in the U.S. and Europe [3] - The report also highlights the importance of technological advancements in energy storage and battery production, which are expected to enhance profitability for key players in the industry [3]