Investment Rating - The report rates the energy storage industry as "Outperform the Market" [1][4][5] Core Insights - The energy storage industry is experiencing rapid growth, with significant demand in emerging markets expected to drive future opportunities [2][3][4] - The domestic market in China is seeing a surge in energy storage system and battery shipments, with 110 GWh of systems and 265 GWh of batteries shipped in the first half of 2025, marking year-on-year increases of 101% and 128% respectively [1][3][56][57] - The U.S. market is also showing growth due to the "Inflation Reduction Act," which is expected to boost energy storage demand in the short term [1][27][29] - Emerging markets, particularly in the Middle East, Southeast Asia, and Africa, are anticipated to become significant export destinations for Chinese energy storage companies due to power shortages and supportive government policies [2][4][54] Summary by Sections Domestic Market Performance - In the first half of 2025, China achieved energy storage tenders of 126.3 GWh and winning bids of 189.8 GWh, reflecting year-on-year increases of 101% and 182% respectively [1][44] - The domestic energy storage system shipment reached 110 GWh, nearing the total for 2024, with expectations of over 200 GWh for the full year [56] - The domestic energy storage battery shipments were 265 GWh, with projections of over 500 GWh for the year, indicating a growth rate of nearly 50% [57] International Market Trends - The U.S. energy storage market is projected to grow, with a 30% year-on-year increase in installed capacity in the first half of 2025 [1][27] - In Europe, energy storage demand is also rising, with Germany showing a 130% increase in front-of-the-meter storage installations in the first half of 2025 [1][36] - Emerging markets are expected to see explosive growth in energy storage installations, with projections of 37 GWh in 2025, a year-on-year increase of 256% [2][51] Investment Recommendations - The report suggests focusing on leading companies in the energy storage supply chain, including Yangguang Electric, Ningde Times, and Yiwei Lithium Energy, as they are well-positioned to benefit from the growing demand in both domestic and international markets [4][5][113]

Core Viewpoint - The energy storage industry is expected to experience rapid growth in the first half of 2025, driven by domestic market demand and increased exports, with significant increases in both energy storage systems and battery shipments [1][4]. Group 1: Domestic Market Performance - In the first half of 2025, domestic energy storage system shipments reached 110 GWh, nearly matching the total for 2024, with energy storage battery shipments at 265 GWh, reflecting a year-on-year increase of 128% [1]. - Domestic energy storage bidding reached 126.3 GWh, up 101% year-on-year, while awarded contracts totaled 189.8 GWh, a 182% increase [2]. Group 2: International Market Trends - The U.S. market showed stable growth in front-of-the-meter energy storage, with installed capacity reaching 5.65 GW in the first half of 2025, a 30% increase year-on-year, supported by the "Inflation Reduction Act" [2]. - In Europe, particularly Germany, front-of-the-meter energy storage installations saw a 10.8% decline, with new installations totaling 2.6 GWh, while front-of-the-meter installations increased by 130% to 0.58 GWh [2]. Group 3: Emerging Markets Potential - Emerging markets are projected to become significant export destinations for domestic energy storage companies, with orders from the Middle East, Australia, and East Asia reaching 35 GWh, 33 GWh, and 24 GWh respectively, totaling an estimated value of 600-700 billion yuan [3]. - The demand for energy storage in emerging markets is expected to rise due to power shortages and supportive government policies, positioning these markets as key areas for growth [3]. Group 4: Global Market Outlook - Global energy storage installations are forecasted to reach 221 GWh in 2025, with a year-on-year growth of 18%, followed by 191 GWh in 2026 and 190 GWh in 2027, reflecting a decline in growth rates thereafter [4]. - The projected value of global energy storage systems for 2025-2027 is 1787 billion yuan, 1550 billion yuan, and 1533 billion yuan, with corresponding year-on-year changes of +19%, -13%, and -11% [4]. Group 5: Investment Recommendations - The energy storage demand in emerging markets, driven by power shortages and policy support, presents significant opportunities for domestic companies. Key players in the solar energy storage supply chain include Yangguang Electric (300274.SZ), CATL (300750.SZ), and others [5].

Investment Rating - The investment rating for the electric equipment and new energy industry is "Outperform the Market" (maintained) [2][3]. Core Insights - The UK government has restarted subsidies for new energy vehicles and is supporting the construction of charging infrastructure, with a total investment plan of £63 million (approximately 600 million RMB) announced on July 13 [4]. - The GGII data indicates that in the first half of 2025, China's energy storage system and battery shipments are expected to continue to achieve high year-on-year growth, with emerging markets likely becoming significant export destinations for the energy storage industry [2][5]. Summary by Sections New Energy Vehicles - In the first half of 2025, cumulative sales of new energy vehicles in the UK reached 332,000 units, a year-on-year increase of 33%. The cumulative sales in nine European countries reached 1.3544 million units, up 26% year-on-year [4]. - The UK government announced a subsidy policy worth £650 million (approximately 6.2 billion RMB) to support the purchase of vehicles priced below £37,000 (approximately 355,000 RMB), effective from July 16, 2025, until the 2028-2029 fiscal year [4]. Energy Storage - According to GGII data, the shipment volume of energy storage systems is expected to reach 110 GWh in the first half of 2025, nearly matching the total for the entire year of 2024, with a year-on-year increase expected [5][7]. - The shipment volume of energy storage batteries in the first half of 2025 is projected to be 265 GWh, a year-on-year increase of 128%, with an expected total shipment of over 500 GWh for the entire year, reflecting a growth rate of nearly 50% [7][11]. Market Opportunities - Emerging markets are anticipated to become important export destinations for Chinese energy storage companies, with significant growth in energy storage installations expected in regions such as the Middle East, Southeast Asia, and Latin America [15][16]. - GGII forecasts that energy storage installations in Australia will reach 7 GWh in 2025, a year-on-year increase of 192%, while combined installations in the Middle East, Southeast Asia, South Asia, Latin America, and Africa are expected to reach 37 GWh, a year-on-year increase of 256% [16]. Investment Recommendations - Recommended companies in the battery segment include CATL and Yiwei Lithium Energy; in the materials and equipment segment, recommended companies include Keda Li, Zhongwei Co., Rongbai Technology, and Dangsheng Technology; in the charging pile segment, Shenghong Co. is recommended [3].