Core Insights - China dominates the global energy storage cell market, with a projected shipment of 301GWh in 2024, accounting for 94.06% of the global market share [1][8] - The energy storage lithium battery market is expected to face supply-demand imbalances in 2025, leading to a "chip shortage" scenario [1][8] - By 2025, China's energy storage lithium battery shipments are anticipated to reach 387GWh, with a potential total of 817GWh over the next five years [1][8] Industry Overview - The global energy storage cell market is transitioning from auxiliary support to core support, with rapid growth in shipments, exceeding 320GWh in 2024 [5][6] - The first half of 2025 saw global energy storage cell shipments reach 240.21GWh, a year-on-year increase of 106.1%, with an expected total of 416GWh for the year [6][8] Market Structure - The energy storage cell industry is categorized into upstream (materials and production equipment), midstream (manufacturing and system integration), and downstream (applications in power generation, grid, and user sectors) [3][8] - The largest application area for energy storage cells is the grid side, which accounted for 57.01% of the market share in 2024 [8] Technological Development - The energy storage cell industry has evolved through three generations of technology, culminating in the development of ultra-large capacity cells [9][10] Competitive Landscape - The global energy storage cell market remains highly concentrated, with major players like CATL, Huizhou EVE Energy, and others expanding their market share through technological advantages and global strategies [10][11] - CATL's energy storage battery revenue reached 572.9 billion yuan in 2024, representing 15.83% of its total revenue [10][11] Future Trends - The energy storage industry is poised for unprecedented growth opportunities driven by global energy transition and carbon reduction efforts, with strong demand for energy storage cells [12][13] - The industry is evolving towards diversification in technology, application scenarios, industrial integration, and long-term value [12][13]

Core Viewpoint - The recent escalation in US-China trade tensions is expected to have a weaker impact on A-shares compared to previous events, with a continued revaluation of Chinese assets anticipated in the medium term [3][4]. Market Impact - The US plans to impose an additional 100% tariff on all goods imported from China starting November 1, 2025, which has led to significant declines in global equity markets and commodities [2][3]. - Major indices such as the Nasdaq and S&P 500 experienced declines of 3.6% and 2.7%, respectively, marking the largest single-day drops since April [2]. - A-shares, including the ChiNext and Hang Seng Tech Index, also saw declines of 5.6% and 3.3% respectively, indicating a broader market reaction [2]. Industry Analysis - **Machinery, Military, and Shipbuilding**: Increased focus on "self-sufficiency" and "security" assets is expected, with scientific instruments and high-end machine tools being particularly relevant [3]. - **Aerospace Engine Supply Chain**: There is potential for further improvement in domestic aerospace engine self-sufficiency, which is currently highly dependent on external sources [4]. - **Software**: Attention is drawn to industrial software and EDA design tools that may be primarily targeted by new tariffs [4]. - **Power Equipment and New Energy**: The energy storage cell segment may face restrictions similar to those seen in April, impacting leading companies in the new energy sector [4]. - **Photovoltaics**: The marginal impact of US tariff policies on the photovoltaic industry is expected to be limited [4]. - **Non-ferrous Metals**: The comprehensive and deepened export controls on rare earths signal significant strategic implications, with current export volumes remaining stable [4]. Valuation Insights - A-shares are currently assessed to be within a reasonable valuation range, with the CSI 300 index trading at a forward P/E ratio of 12.5x, slightly above its historical average [6][7]. - Compared to global markets, A-shares remain relatively undervalued, with the S&P 500 and other major indices trading at higher forward P/E ratios [6]. - The relative attractiveness of equities remains, with the CSI 300 index's dividend yield at approximately 2.6%, compared to the yield on ten-year government bonds [6][7]. Market Positioning - The current market environment suggests a potential for short-term adjustments, particularly in growth sectors that have seen significant gains [5][6]. - The valuation of A-shares relative to GDP and M2 is low, indicating room for growth and investment opportunities [7][12].

Group 1 - The A-share market is under pressure, with the Shanghai Composite Index down 1.49%, Shenzhen Component down 1.93%, and ChiNext down 2.62% as of 10:43 AM on September 4 [1] - The ChiNext New Energy ETF (Hua Xia, 159368) is performing well, up 0.73%, with its constituent stock, Wei Co., leading with a gain of over 10% [1] - The ChiNext New Energy ETF has attracted significant capital, with inflows of 14.47 million yuan yesterday and 18.97 million yuan over the past five days [1] Group 2 - There has been explosive growth in overseas energy storage demand this year, leading to a surge in orders for domestic energy storage cell companies, which are now operating at full capacity [1] - The implementation of market-oriented pricing reforms for renewable energy has created a situation where some energy storage companies report that "even with price increases, orders cannot be fulfilled," resulting in a "chip shortage" [1] - The ChiNext New Energy ETF includes leading energy storage cell companies, positioning it to benefit from industry opportunities [1] Group 3 - The ChiNext New Energy ETF (Hua Xia, 159368) is the first ETF in the market tracking the ChiNext New Energy Index, covering various sectors such as batteries, photovoltaics, and semiconductors, which are highly elastic and growth-oriented [2] - The management fee for the ChiNext New Energy ETF is 0.15%, and the custody fee is 0.05%, totaling only 0.2%, making it the lowest fee among similar products [2] - Investors are encouraged to continuously monitor the investment opportunities in the future development of the new energy sector [2]

Core Viewpoint - Longking Environmental Protection (600388.SH) reported stable growth in its environmental business and significant contributions from its clean energy sector, indicating a positive outlook for the company's operations in the first half of the year [1]. Financial Performance - The company achieved operating revenue of 4.683 billion yuan, representing a year-on-year increase of 0.24% [1]. - The net profit attributable to shareholders was 445 million yuan, reflecting a year-on-year growth of 3.27% [1]. - Basic earnings per share stood at 0.35 yuan [1]. Business Segments - The environmental business of the company showed steady and healthy development during the reporting period [1]. - The clean energy business made a significant contribution, generating nearly 100 million yuan in net profit [1]. - The energy storage cell business improved its product output and quality through deepened cooperation with EVE Energy, leading to profitability despite intense market competition [1].