Overall Viewpoint - The AIDC power/storage sector is experiencing a positive outlook, with North American AI chain focusing on light modules, liquid cooling, AIDC power, and AI storage. Recent developments in liquid cooling have opened up new opportunities for AIDC power overseas orders, and the 26H2 HVDC technology solution is expected to see increased volume. Collaboration related to SST is also anticipated to yield results. The overseas energy storage market remains robust, with the logic of electricity shortages in the U.S. unchanged, and a temporary easing of U.S.-China relations. The market is currently less sensitive to BBB and 301-related legislation, warranting continued attention to AIDC power and overseas storage sectors [4]. Group 1: AIDC Power/Storage - The North American AI chain is prioritizing light modules, liquid cooling, AIDC power, and AI storage, with liquid cooling trends enhancing the potential for AIDC power overseas orders [4]. - The 26H2 HVDC technology solution is expected to facilitate increased production, while SST-related collaborations are projected to gradually materialize [4]. - The overseas energy storage market remains favorable, with the U.S. electricity shortage logic still intact, and a temporary thaw in U.S.-China relations [4]. Group 2: Lithium Battery - Recent environmental assessments for the Jiangxia lithium mine and Tianqi Lithium's decision to not use SMM pricing have influenced the market, with several lithium iron phosphate companies announcing production cuts to strengthen pricing negotiations [4]. - Changes in the supply side of lithium carbonate and the "anti-involution" logic are enhancing price support expectations, leading to a recovery in the lithium battery sector during the spring market [4]. - The investment hierarchy for lithium battery materials is as follows: lithium carbonate > lithium hexafluorophosphate > aluminum foil > separator > copper foil > anode [4]. Group 3: Hydrogen Ammonia and Wind Power - During the 14th Five-Year Plan, hydrogen ammonia is viewed as a significant direction for new energy consumption and non-electric applications, supported by future industry prospects and the EU carbon tariff in 2026 [5]. - The National Development and Reform Commission emphasizes the potential for coordinated, large-scale, and advanced construction of hydrogen ammonia projects [5]. - Although Goldwind Technology's stock has surged due to commercial aerospace trends, market expectations for hydrogen ammonia remain relatively low, indicating a need for continued focus [5].

Investment Ratings - The report maintains a "Buy" rating for both the power equipment and environmental protection sectors [1]. Core Views - The AIDC power/storage, lithium battery, and hydrogen-ammonia sectors are highlighted as key investment areas, with a focus on the North American AI chain and the ongoing demand for energy storage solutions [3]. - The lithium battery sector is experiencing a recovery due to supply chain adjustments and production cuts among phosphate lithium companies, which are expected to enhance pricing power [4]. - The hydrogen-ammonia sector is viewed positively due to supportive policies and market expectations, with significant investment potential anticipated [4]. Summary by Sections AIDC Power/Storage - North American AI chain is driving interest in AIDC power and storage, with liquid cooling technology opening new order opportunities [3]. - The outlook for overseas energy storage remains strong, particularly in the U.S., where electricity shortages continue to drive demand [6]. Lithium Batteries - Recent environmental assessments for lithium mines and production cuts among phosphate lithium companies are expected to stabilize prices and enhance negotiation power [4]. - The investment hierarchy for lithium materials is ranked as follows: lithium carbonate > hexafluorophosphate > aluminum foil > separator > copper foil > anode [4][19]. Hydrogen-Ammonia and Wind Power - The hydrogen-ammonia sector is expected to gain traction as a key application for renewable energy consumption, supported by favorable policies [4]. - Wind power installations are projected to grow significantly, with onshore wind capacity expected to increase by 9.68% year-on-year in 2024 [7]. Energy Storage - The domestic energy storage market is experiencing sustained growth, with significant installations reported in Inner Mongolia [6]. - Key projects include a 20GWh energy cell procurement by Ningde Times and various large-scale storage projects in Shanxi and Hebei [6]. Wind Power - The report notes a substantial increase in wind power installations, with a total of 82.50GW added in 2025, marking a year-on-year growth of 59.42% [7]. Pricing Trends - The report indicates that the prices of key materials such as lithium carbonate and phosphoric iron lithium are experiencing fluctuations, with market dynamics affecting supply and demand [20][30].

Group 1 - The domestic energy storage sector is experiencing sustained demand, with significant GWh-level tenders such as CGN's 7.2GWh energy storage system and Xinjiang Production and Construction Corps' 1200MWh independent energy storage project [4] - The independent energy storage market is expected to maintain a good level in 2026, supported by the development of the energy market, capacity market, and ancillary services market [4] - The overseas energy storage demand remains strong, particularly in the U.S. and non-U.S. countries, with potential growth in regions like the Middle East and Ukraine [4] Group 2 - The world's largest integrated green hydrogen and ammonia project, the China Energy Construction Corporation's Songyuan Hydrogen Energy Industrial Park, has officially commenced production, indicating a positive trend for the hydrogen sector [5] - Poland has successfully awarded its first offshore wind power tenders, distributing 3.4GW of installed capacity, which is expected to enhance the European offshore wind market [5] - The hydrogen and ammonia sector is anticipated to receive more investment due to favorable policies and the emphasis on large-scale construction [5] Group 3 - Recent environmental assessments for the Qianxiawo lithium mine indicate a potential continuation of the lithium carbonate destocking trend, with expectations for demand in the lithium battery sector to remain strong [5] - The supply side of the lithium battery industry is expected to improve, with a focus on investment opportunities in lithium mines and segments like aluminum foil and anodes that are not yet supporting expansion [5]

Overall Viewpoint - The National Development and Reform Commission (NDRC) has acknowledged the achievements in the development of energy storage and hydrogen energy, emphasizing the importance of market-oriented mechanisms for ensuring reasonable returns in energy storage [4] - The Ministry of Industry and Information Technology (MIIT) has highlighted the need for regulatory compliance to address irrational competition in the battery manufacturing industry [4] Investment Aspects - Energy Storage: Domestic energy storage is expected to see continued growth, with local investment entities taking a more active role. The bidding data for November is anticipated to remain strong, and independent energy storage bidding in 2026 is projected to maintain favorable levels seen in 2025. The complete revenue model for independent storage will be achieved through energy markets, capacity markets, and ancillary service markets [5] - Hydrogen Energy: With the dual benefits of future industry development in China and the EU carbon tariff in 2026, hydrogen energy is expected to attract more investment as a key direction for new energy consumption and green electricity applications beyond electricity [5] - Lithium Battery: The market is currently focused on the bidding expectations for domestic energy storage in 2026 and the sales performance of new energy vehicles. The supply side of the lithium battery industry is also experiencing a trend of "anti-involution," indicating an improvement in supply-demand dynamics. Short-term expectations for lithium hexafluorophosphate are high, and various segments are entering long-term contract signing phases. Mid-term investment opportunities may arise in lithium mines with significant supply variability and in separators where profitability does not support capacity expansion [5]

Investment Ratings - The report maintains a "Buy" rating for both the power equipment and environmental protection sectors [1]. Core Views - The report highlights the continued prosperity of the energy storage industry chain, with hydrogen and ammonia expected to be developed in a coordinated, large-scale, and advanced manner [2][3]. - The National Development and Reform Commission (NDRC) has recognized the achievements in energy storage and hydrogen energy development, emphasizing the importance of market-oriented mechanisms for reasonable returns [2]. - The investment outlook for energy storage, hydrogen energy, and lithium batteries remains positive, with expectations for sustained demand and favorable bidding data in the domestic market [3][4]. Summary by Sections Energy Storage - Domestic energy storage is expected to maintain a good level of independent storage bidding in 2026, supported by a complete revenue model through energy, capacity, and ancillary service markets [3]. - Overseas energy storage demand is anticipated to rise, particularly in the U.S. due to ongoing electricity shortages, and in regions like the Middle East and Ukraine [3][6]. - The report notes a continuous high level of bidding and production in domestic energy storage, with significant projects being awarded [6][7]. Wind Power - The report states that China's onshore wind power installed capacity is projected to grow by 9.68% year-on-year in 2024, while offshore wind power capacity is expected to decrease by 40.85% [8]. - The bidding capacity for domestic wind power projects has seen a significant increase, with a 90% year-on-year growth in 2024 [11]. - The profitability of wind turbine manufacturers is expected to improve due to rising order deliveries and ongoing cost reductions [18]. Lithium Batteries - The lithium battery supply chain is experiencing strong demand, particularly in the electric vehicle and energy storage markets, with expectations for a favorable supply-demand balance [19][22]. - The report suggests focusing on investment opportunities in lithium mines and components that are not yet supporting production expansion [22]. - The pricing dynamics for lithium carbonate and other battery materials are expected to remain strong due to tight supply conditions [21][23].

Overall Viewpoint - Hydrogen ammonia and methanol, along with wind power, are expected to attract more investment due to the dual benefits of China's future industries and the EU carbon tariff in 2026. The global shipping industry is accelerating its decarbonization, and the International Maritime Organization (IMO) is promoting green fuel policies, which may keep green methanol prices high amid rising demand and limited supply. The current market expectations for the hydrogen ammonia and methanol sector are low, which can resonate with the wind power sector [4] - The ongoing electricity shortage in the U.S. is highlighted, with Nvidia's current shipment scale corresponding to data center power levels. The gap between actual power supply and grid capacity in the U.S. is a key focus for market speculation. Short-term fluctuations in stock prices are influenced by interest rate expectations and short-selling, but technology remains the main trend, with a focus on opportunities for rebounds in the overseas energy storage and SST sectors [4] Domestic Energy Storage - Heilongjiang Province has released a special implementation plan for large-scale new energy storage construction (2025-2027), aiming for an installed capacity of over 6GW by 2027. The first batch involves 1.45GW, with a reliable capacity compensation mechanism being established. Provinces are improving capacity price compensation mechanisms to ensure financing for independent energy storage. It is anticipated that independent energy storage bidding in 2026 will maintain a good level similar to 2025, and as the industry develops, independent storage will achieve a complete revenue model through energy, capacity, and ancillary service markets. After 2027, the growth of independent energy storage installations will align closely with load growth [5] Lithium Battery - The market is currently speculating on the production expectations for domestic energy storage in 2026, with short-term positive expectations remaining unchallenged. Growth expectations for power batteries and overseas energy storage are consistent. Additionally, the lithium battery supply chain is experiencing a "reverse involution" logic, indicating a trend of supply-demand improvement. From the perspective of supply-demand tightness in the supply chain, lithium hexafluorophosphate is the most constrained, followed by separators, copper foil, high-pressure lithium iron phosphate, and anodes. Short-term expectations for lithium hexafluorophosphate are already high, and subsequent stages are gradually entering long-term contract signing. Mid-term investment opportunities should focus on lithium mines with significant supply variability and separator segments where profitability does not support expansion [5]

Real Estate - In October, the core 30 cities saw a total of 133 residential land transactions, down 33.2% year-on-year, with an average floor price of 9,279 yuan per square meter, a decrease of 4.5% year-on-year [4] - From January to October, the total area of residential land transactions in 100 cities decreased by 9% year-on-year, while the average floor price increased by 15% year-on-year [4] - The total transaction value of residential land in the core six cities reached 541.2 billion yuan, accounting for 44.7% of the total in 100 cities, indicating a further deepening of market differentiation [4] Non-ferrous Metals - Cable manufacturers' operating rates have increased for three consecutive weeks, with tight supply conditions persisting; the Q4 peak season for the power grid is expected to continue [5] - Air conditioning production in October decreased by 28% year-on-year, but there is a continuous improvement in production on a month-on-month basis [5] - The supply-demand balance for copper is expected to remain tight, with copper prices likely to continue rising after short-term fluctuations [5] Electric Power and Environmental Protection - The hydrogen ammonia methanol sector is expected to attract more investment as a key direction for new energy consumption and green electricity applications [6] - The ongoing electricity shortage in the U.S. presents opportunities for rebound in underperforming sectors such as overseas energy storage and solid-state batteries [6] - The independent energy storage bidding in China for 2026 is expected to maintain a favorable level compared to 2025 [6] Public Utilities - The domestic thermal coal price remained stable week-on-week, while imported coal prices increased significantly [7] - In October, the total electricity consumption in China reached 8,572 billion kilowatt-hours, a year-on-year increase of 10.4% [7] Pharmaceuticals - The small nucleic acid drug sector is experiencing significant advancements, indicating the onset of a new wave of innovative drugs [8] - The industry is entering a golden development period driven by "technological breakthroughs + commercial realization," with many domestic pharmaceutical companies advancing to clinical research stages since 2025 [8] Company Analysis - Hangyang Co., Ltd. reported a revenue of 11.43 billion yuan for Q1-Q3 2025, a year-on-year increase of 10.4%, and a net profit of 760 million yuan, up 12.1% year-on-year [9] - The gross margin was 20.6%, an increase of 0.2 percentage points year-on-year, while the net margin was 7.4%, up 0.3 percentage points year-on-year [9]

Investment Ratings - The report maintains a "Buy" rating for both the power equipment and environmental protection sectors [1]. Core Views - The hydrogen ammonia and wind power sectors are expected to benefit from China's future industrial policies and the EU's carbon tariff by 2026, leading to increased investment opportunities. The global shipping industry is accelerating its decarbonization, with green methanol prices likely to remain high due to rising demand and limited supply [3]. - In the U.S., the ongoing electricity shortage presents opportunities for rebound in related stocks, particularly in the overseas energy storage and SST sectors. Key companies to watch include Sunshine Power, Jinpan Technology, and others [3]. - Domestic energy storage is projected to grow significantly, with Heilongjiang Province aiming for over 6GW of installed capacity by 2027. The independent energy storage market is expected to maintain a good level of bidding in 2026 [4]. - The lithium battery sector is experiencing a tightening supply-demand dynamic, with significant growth expected in both domestic and overseas markets. Key investment opportunities are identified in lithium mines and the separator segment [4][20]. Summary by Sections Wind Power - In 2024, China's onshore wind power is expected to add 75.8GW of capacity, a year-on-year increase of 9.68%, while offshore wind power is projected to add 4.0GW, a decrease of 40.85% [6]. - The public tender capacity for wind power in 2024 is 164.1GW, a 90% increase year-on-year, with onshore wind accounting for 152.8GW [9]. Lithium Battery - The domestic production of lithium carbonate is expected to remain stable, with strong demand from the power battery sector driven by the rapid growth of the new energy vehicle market [20]. - The supply of lithium hexafluorophosphate remains tight, with prices expected to continue rising due to increased demand from downstream applications [23]. Investment Recommendations - The report suggests focusing on companies such as Goldwind Technology, Sunshine Power, and Ningde Times, which are well-positioned to benefit from the trends in wind power and lithium battery sectors [19][24].