Investment Rating - The report maintains an "Overweight" rating for the industry, focusing on energy storage and solid-state battery advancements [1] Core Insights - Dongguan is a key city in the Guangdong-Hong Kong-Macao Greater Bay Area, with a strong manufacturing base and a strategic focus on new energy as a critical emerging industry [5][12] - The city aims to establish itself as a hub for new energy storage, supported by government policies and a robust ecosystem of small and medium enterprises [5][51] - Dongguan's lithium battery industry is well-established, with over 300 companies directly involved and more than 1,500 related enterprises, showcasing a complete industrial chain from materials to applications [24][30] Summary by Sections 1. New Energy as a Strategic Emerging Industry - New energy is one of the eight strategic emerging industries in Dongguan's modern industrial system [21] - Dongguan's GDP for 2024 is projected to reach 1.23 trillion yuan, ranking fourth in Guangdong province with a growth rate of 4.6% [12][14] 2. Strong Foundation of Dongguan's New Energy Battery Industry - Dongguan ranks first in the concentration of new energy SMEs, indicating a vibrant entrepreneurial ecosystem [25][27] - The city has a complete lithium battery supply chain, covering upstream materials, midstream cell manufacturing, and downstream system integration [30][39] 3. Focus on New Energy Storage Industry - The global demand for energy storage batteries is experiencing explosive growth, with a compound annual growth rate of 89.8% from 2020 to 2024 [42] - Dongguan is positioning itself as a "New Energy Storage Terminal City," with multiple policies to support the development of the new energy storage industry [51][53] 4. Technological Breakthroughs and Competitive Edge in Solid-State Batteries - Dongguan ranks sixth in China's solid-state battery industry competitiveness, with significant research advancements being made [5][43] - Local companies are actively investing in solid-state battery technologies, enhancing the region's competitive position [5][39] 5. Major Listed Companies in Dongguan's New Energy Battery Sector - Key players in Dongguan's new energy battery industry include KJ New Energy, Honggong Technology, and Zhengye Technology, which are recognized for their contributions to the sector [5][41]