Investment Rating - The industry is rated as "Outperform" compared to the market index [3][33]. Core Insights - The report highlights a stable production trend in the photovoltaic (PV) component sector, with a slight increase in production from leading companies, while most others are reducing output to clear inventory. The total production for November is expected to be below 44.5 GW, with potential for recovery in profit margins leading to increased production [3]. - In December 2025, the production forecast for batteries in China is 220 GWh, reflecting a 5.3% month-on-month increase, with energy storage batteries accounting for approximately 35.3% of this total. Globally, the production is expected to reach 235 GWh, up 3.1% month-on-month, indicating strong growth in energy storage despite pressure on power battery production [3]. - The average price of polysilicon remains stable at 52.00 CNY/kg, while the price of monocrystalline silicon wafers has slightly decreased to 1.20 CNY/piece. The average price for energy storage systems based on lithium iron phosphate batteries has increased by 10% to 0.5547 CNY/Wh [3]. - Domestic demand for PV installations saw a significant increase in October 2025, with new installations reaching 12.6 GW, a 30.4% month-on-month growth, although this represents a 38.3% year-on-year decline. Cumulatively, new installations for the year reached 252.87 GW, up 39.5% year-on-year [3]. - Export data indicates that in October 2025, the export value of PV components was approximately 2.258 billion USD, a year-on-year increase of 4.39%, despite a month-on-month decline of 19.34%. The cumulative export value for the first ten months of 2025 was 23.473 billion USD, down 4.89% year-on-year [3]. Summary by Sections Production - PV component production has shown stability, with leading companies increasing output slightly while others reduce to manage inventory. November's production is projected to be below 44.5 GW [3][4]. Prices - The price of polysilicon remains at 52.00 CNY/kg, while monocrystalline silicon wafer prices have decreased slightly. Energy storage system prices have increased by 10% [3][7]. Domestic Demand - New PV installations in October reached 12.6 GW, marking a 30.4% month-on-month increase but a 38.3% year-on-year decline. Cumulative installations for the year are at 252.87 GW, up 39.5% year-on-year [3][18]. Overseas Demand - The export value of PV components in October was approximately 2.258 billion USD, with a year-on-year increase of 4.39%. The cumulative export value for the first ten months was 23.473 billion USD, down 4.89% year-on-year [3][28].

Investment Rating - The industry is rated as "Outperform" compared to the market [2][37]. Core Insights - The report highlights strong demand for energy storage and power batteries, with a notable recovery in raw material and cell prices [2][5]. - The photovoltaic (PV) component production is expected to be below 44.5 GW in November 2025, with potential for profit recovery leading to increased production [5][9]. - The report suggests focusing on energy storage-related companies due to significant growth in tender capacity for energy storage projects [2][21]. Summary by Sections Production - PV component production has been stable since the second half of 2025, with leading companies slightly increasing production while most others are reducing to clear inventory [5]. - In November 2025, the production of power, storage, and consumer batteries in China is projected to reach 209 GWh, a month-on-month increase of 12.4% and a year-on-year increase of 64.6% [5][9]. Prices - As of November 21, 2025, the price of polysilicon remains stable at 52.00 CNY/kg, while the average price of 183N monocrystalline silicon wafers has decreased to 1.28 CNY/piece [9][16]. - The average price for lithium iron phosphate battery storage systems is reported at 0.5547 CNY/Wh, with a month-on-month increase of 10% [16][21]. Domestic Demand - In September 2025, the domestic PV installation capacity increased by 31.3% month-on-month to 9.7 GW, but saw a year-on-year decline of 53.8% [20][21]. - The cumulative new PV installation from January to September 2025 reached 240.27 GW, representing a year-on-year growth of 49.3% [20]. Overseas Demand - In October 2025, the export value of PV components was approximately 2.258 billion USD, showing a year-on-year increase of 4.39% but a month-on-month decrease of 19.34% [26][27]. - The cumulative export value from January to October 2025 reached 23.473 billion USD, a year-on-year decrease of 4.89% [26].

Group 1 - The 8th China International Photovoltaic and Energy Storage Industry Conference will be held from November 17 to 20, 2025, in Chengdu, China, focusing on showcasing new products, technologies, and trends in the global energy storage industry [1] - The exhibition area will exceed 60,000 square meters, with over 6,000 participating companies expected, including more than 100 confirmed overseas buyers interested in high-quality renewable energy products [1] - The overseas buyers show strong demand for solar photovoltaic panels, energy storage systems, and related products across the entire photovoltaic supply chain [1] Group 2 - The "Sun God" Global Energy Storage and Chinese Brand Series Awards will be launched in 2024, recognizing companies across the entire industry chain, including categories for silicon materials, battery cells, and equipment [2] - Companies such as TCL Zhonghuan, Tongwei Co., Longi Green Energy, and others are predicted to have the highest chances of winning, with their stock prices already showing significant movements ahead of the event [4] Group 3 - Strong future demand for energy storage is anticipated, with a projected growth of 30-40% in the next two years due to supply tightness and increasing demand in emerging markets [3] - The cumulative penetration rate of energy storage in China is still below 10%, with an upward revision of new installations to 300 GWh expected next year [3] - Major opportunities in energy storage are linked to data centers, with leading companies already securing substantial orders [3] Group 4 - Historical performance of leading companies shows significant stock price increases, with TCL Zhonghuan experiencing a maximum increase of over 37% from October 18 to October 29, 2024 [4] - Tongwei Co. saw a maximum increase of over 35% from October 23 to November 6, 2024 [7] Group 5 - Key players in the domestic energy storage sector include CATL and Yiwei Lithium Energy for battery cells, and companies like Sungrow Power Supply and Canadian Solar for energy storage systems [9] - Leading companies in household energy storage include Deye Technology, Airo Energy, and Pylon Technologies [9]