Investment Rating - The report maintains an "Outperform" rating for the electric equipment and new energy industry [1] Core Insights - The State Council meeting emphasized the need for high-quality development in the new energy vehicle (NEV) industry, addressing irrational competition and promoting a regulated competitive environment, which is beneficial for the NEV sector [1] - According to the China Association of Automobile Manufacturers, NEV production and sales are expected to reach 6.968 million and 6.937 million units respectively in the first half of 2025, representing year-on-year growth of 41.4% and 40.3%, with NEV sales accounting for 44.3% of total new car sales [1] - The report highlights the clear trend towards the industrialization of solid-state batteries, suggesting a focus on related materials and equipment companies [1] - In the photovoltaic sector, the central economic work conference called for a comprehensive rectification of "involution" competition, leading to price increases in the upstream photovoltaic supply chain [1] - The hydrogen energy sector is seeing continuous policy support for industrialization, with recommendations to focus on electrolyzer manufacturers and companies benefiting from hydrogen infrastructure [1] Industry Dynamics - The electric equipment and new energy sector saw a 0.57% increase this week, with power generation equipment rising by 3.86% and the NEV index increasing by 2.62% [10] - The report notes that the photovoltaic sector experienced a decline of 2.53%, while the wind power sector fell by 0.27% [10] - The report indicates that the price of silicon materials has been supported by cost factors, with recent price adjustments reflecting a positive response to the "anti-involution" policy [1][15] - The report also mentions that the domestic lithium battery market is experiencing price fluctuations, with certain materials showing varying trends [14] Company Updates - Longi Green Energy is expected to report a net loss of 2.4 to 2.8 billion yuan for the first half of the year, while Tongwei Co. anticipates a net loss of 4.9 to 5.2 billion yuan [29] - Zhongke Electric is projected to achieve a net profit of 232 to 301 million yuan, marking a year-on-year increase of 235% to 335% [29] - The report highlights that Tianqi Lithium is expected to report a net profit of 0 to 155 million yuan for the first half of the year [29] - The report also notes that Tianqi Materials has signed a procurement agreement to supply at least 550,000 tons of electrolyte products by the end of 2030 [29]