Investment Rating - The report maintains an "Outperform" rating for the electric equipment and new energy industry [1]. Core Insights - The reduction of tariffs between China and the US is expected to benefit new energy exports, with optimistic growth in photovoltaic demand from the US and emerging economies [1]. - The report emphasizes the importance of cost reduction and efficiency improvement in photovoltaic manufacturing, focusing on the optimization of leading companies in silicon materials and battery cells [1]. - The wind power sector is anticipated to see steady progress in domestic and overseas demand, with a positive outlook for profitability recovery in the complete machine and component segments by 2025 [1]. - The government’s push for smart connected new energy vehicles is expected to sustain high sales growth throughout the year, driving demand for batteries and materials [1]. - The report highlights the ongoing industrialization of solid-state batteries, with mass production expected by 2027, benefiting companies involved in batteries, materials, and equipment [1]. - Continuous promotion of hydrogen energy development is noted, with recommendations to focus on companies with cost and technological advantages in electrolyzer production and hydrogen infrastructure [1]. Summary by Sections Industry Performance - The electric equipment and new energy sector rose by 1.39% this week, outperforming the Shanghai Composite Index, which increased by 0.76% [10]. - The photovoltaic sector saw a significant increase of 2.96%, while the wind power sector experienced a decline of 0.58% [13]. Key Industry Information - In April 2025, China's new energy vehicle sales reached 1.226 million units, a year-on-year increase of 44.2%, accounting for 47.3% of total new car sales [24]. - The battery alliance reported a total of 54.1 GWh of power batteries installed in April, with a month-on-month decrease of 4.3% [24]. - The US-China trade talks resulted in a significant reduction in bilateral tariffs, which is expected to positively impact exports in photovoltaic, lithium battery, and energy storage sectors [24]. Company Developments - CATL has set the final price for its H-share issuance at HKD 263 per share, with plans for listing on May 20, 2025 [27]. - Canadian Solar has adjusted its 2025 component shipment target to 25-30 GW, down from the previous estimate of 30-35 GW [27]. - Several companies, including Sanyuan Electric and Igor, are engaging in stock repurchase plans and other strategic financial maneuvers [27].

Core Viewpoint - The article highlights the recent movements of social security funds in the A-share market, indicating a significant increase in holdings across various companies, with a focus on the newly added positions in the top ten circulating shareholders. Group 1: Social Security Fund Holdings - In the first quarter, social security funds entered the top ten circulating shareholders of 215 companies, with Zhongtong Bus having the highest number of new holdings at 3 [1] - Other companies with 2 new holdings each include Lens Technology, Inner Mongolia First Machinery, Anke Electric, Xueda Education, Focus Technology, Haixing Electric, Zhenhua Co., Juewei Food, Zhujiang Beer, Beidahuang, Anda Intelligent, *ST Songfa, Hehe Information, Aoshikang, and Limin Co. [1] Group 2: Company-Specific Insights - Zhongtong Bus saw a new holding value of 137 million yuan, with a net profit of 76.51 million yuan in Q1, representing a year-on-year increase of 80.52%. The company is expected to continue its upward profit trend due to strong overseas orders [2][3] - Lens Technology's new holding value reached 1.088 billion yuan, with Q1 revenue of 17.063 billion yuan, up 10.10% year-on-year, and a net profit of 429 million yuan, up 38.71% year-on-year, driven by growth in smartphone and computer-related businesses [3][4] - Inner Mongolia First Machinery's new holding value was 295 million yuan, with a Q1 net profit of 186 million yuan, reflecting an 11.03% year-on-year increase. The company is positioned to benefit from the global military trade market's upward cycle [4][5] - Anke Electric's new holding value was 251 million yuan, but it reported a net profit of 43.72 million yuan, down 28.92% year-on-year. The company is actively pursuing international collaborations following discussions at the Dubai Power Exhibition [5]