Investment Rating - The report maintains a positive outlook on the power equipment and new energy industry, highlighting high growth potential and certainty in sectors like energy storage and lithium batteries [5][11]. Core Insights - Energy storage is expected to maintain high prosperity with a cumulative installed capacity CAGR of 37% from 2023 to 2030, emphasizing the importance of selecting leading companies in the sector [5]. - Lithium battery demand is supported by three main factors: policy-driven growth in new energy vehicle demand, the explosion of energy storage, and a recovery in material supply [5]. - The photovoltaic sector is anticipated to rebound in the second half of 2025, driven by high-quality demand and industry collaboration [5]. Summary by Sections Market Review - From February 28 to March 7, 2025, the CSI 300 index increased by 1.39%, the ChiNext index by 1.61%, and the new energy index by 1.16%, ranking 16th among industries [11]. Valuation Analysis - As of March 7, 2025, the price-to-earnings ratio (TTM) for the power equipment and new energy industry is 26.64, which is at 29.69% of its 10-year historical valuation percentile, indicating it is at a historical low [15][17]. Industry Data Tracking - The photovoltaic industry is entering a downcycle in pricing, with significant price drops in silicon materials and components, leading to a pressure on profit margins [20][25]. - As of March 5, 2025, the price of high-grade dense silicon is 38.00 yuan/kg, with single-sided monocrystalline PERC components priced at 0.69 yuan/W [21]. Key News Tracking - The report highlights significant developments in the wind power sector, including a total of 4.12GW of wind power projects awarded in February 2025, with major players like Envision and Goldwind leading the bids [50]. - The report also notes the establishment of a new company by State Grid in Xiong'an, indicating ongoing investments in the energy sector [63].

Investment Rating - The report maintains a positive outlook on the renewable energy sector, particularly in solar and wind energy, indicating strong recovery potential in profitability and pricing dynamics [1][6][9]. Core Insights - The government work report emphasizes the development of the renewable energy industry, addressing issues such as "internal competition," the construction of "Shagora" renewable energy bases, and the development of offshore wind power for the first time [1][6][9]. - The solar industry is experiencing a significant recovery in both volume and price, with expectations for continued upward trends in glass and battery cell profitability [1][6][9]. - The wind energy sector is expected to benefit from government policies aimed at stabilizing prices and enhancing project profitability, particularly in offshore wind projects [1][6][9]. - The electric grid sector is witnessing a surge in demand for high-voltage equipment, with significant increases in tender amounts for transmission and transformation equipment [1][6][9]. Summary by Relevant Sections Solar & Energy Storage - The government work report highlights the importance of the renewable energy sector, with new initiatives aimed at addressing structural issues and enhancing supply and demand dynamics [1][6]. - The solar industry is seeing a strong recovery in production and pricing, with expectations for increased output in March [1][6]. - Key components such as glass and battery cells are identified as having the best potential for profitability recovery [1][6]. Wind Energy - The government work report's focus on offshore wind development marks a significant policy shift, indicating a positive outlook for the sector [1][6]. - The report anticipates a return to reasonable pricing levels for wind turbines, driven by policy guidance and market demand [1][6]. Electric Grid - The report notes a record high in tender amounts for grid equipment, with a total of 152 billion yuan for 2025, reflecting a 23% year-on-year increase [1][6]. - The demand for high-voltage products is surging, with specific tenders for 750kV equipment showing substantial growth [1][6]. New Energy Vehicles - The report indicates that the overall sales performance of new energy vehicles in February met expectations, with significant growth in electric vehicle sales [2][12][16]. - The introduction of new models, such as the Galaxy E8 and the Wanjie M8, is expected to enhance market competitiveness [12][13]. Lithium Batteries - The report highlights the impact of increased tariffs on lithium batteries, raising the effective tax rate to approximately 50%, which may affect trade dynamics [2][16]. Hydrogen and Fuel Cells - The establishment of a significant venture capital fund for hydrogen energy is expected to attract substantial investment, enhancing the industry's long-term growth prospects [2][10]. - Policy proposals from the recent national congress indicate a shift towards cost reduction and demand expansion in the hydrogen sector [2][10].

Investment Rating - The industry investment rating is maintained as "Add" [5] Core Viewpoints - Domestic offshore wind projects are accelerating, and domestic companies are expanding overseas. The Shenneng Hainan CZ2 offshore wind power demonstration project has completed its main engineering work, with a planned capacity of 1,200 MW, and the first phase has a capacity of 603 MW. Additionally, the Cangnan No. 5 offshore wind project has been approved with a planned capacity of 800 MW [1][67] - The wind power installed capacity in China reached 79.34 GW in 2024, representing a year-on-year growth of 4.5%. The total installed capacity of wind power in China reached 520 million kW by the end of 2024, with a year-on-year increase of 18.0% [2][26] - The approval of wind power projects in 2024 totaled 103.41 GW, a year-on-year increase of 63.24%, with onshore wind projects accounting for 87.55 GW and offshore wind projects for 14.62 GW [2][44] Summary by Sections Market Performance Review - The electric power equipment sector experienced a weekly change of 1.12%, ranking 18th among 31 first-level industries in terms of performance [2][11] - The wind power equipment sub-sector had a weekly change of 0.09%, indicating a middle-range performance [15] Wind Power Industry Chain Tracking - The total installed capacity of wind power in China reached 520 million kW by the end of 2024, with an increase of 79.34 GW in new installations for the year [26][31] - The average utilization rate of wind power in 2024 was 95.9%, with wind power generation accounting for 10.1% of the total electricity consumption [31][36] Investment Recommendations - Companies benefiting from the demand for offshore wind power and the development of deep-sea wind projects include Dongfang Cable, Haili Wind Power, Qifan Cable, and Yaxing Anchor Chain [3][68] - Companies with strong capabilities in expanding overseas markets include Dajin Heavy Industry, Taisen Wind Energy, and Zhenjiang Co., Ltd. [3][68] - Wind turbine manufacturers with recovering profitability include Mingyang Smart Energy, Goldwind Technology, Sany Heavy Energy, and Yunda Co., Ltd. [3][68]