Investment Rating - The industry investment rating is "Outperform the Market" [1][57]. Core Viewpoints - The report indicates that the power energy industry is expected to outperform the CSI 300 index in the next six months due to favorable industry fundamentals [57]. - The report highlights significant growth in electricity consumption and generation capacity, with a 4.60% year-on-year increase in total electricity consumption from January to September 2025 [17][21]. - The report notes a substantial increase in new power generation capacity, particularly in thermal and wind power, with a 51.18% year-on-year growth in new installed capacity [19][21]. Summary by Sections Market Performance - During the period from November 3 to November 7, 2025, the CSI 300 index rose by 0.82%, while the power equipment index increased by 4.98%, outperforming the CSI 300 by 4.16 percentage points [10][11]. - Among the 31 first-level industries, the power equipment sector ranked first with a 4.98% increase [11][16]. Power Industry Operation - In September 2025, the total electricity consumption reached 888.6 billion kWh, marking a 4.50% year-on-year increase [17]. - From January to September 2025, the cumulative electricity consumption was 7767.5 billion kWh, with a 4.60% year-on-year growth [17]. - The new installed generation capacity from January to September 2025 was 366.73 million kW, reflecting a 51.18% year-on-year increase [19][21]. - The average utilization hours of power generation equipment were 2368 hours, a decrease of 251 hours year-on-year [29]. New Power System Situation Photovoltaics - The price of polysilicon remained stable at an average of 52 yuan/kg as of November 5, 2025 [36]. Energy Storage - By the end of the first half of 2025, China's operational energy storage projects had a cumulative installed capacity of 164.3 GW, a 59% year-on-year increase [40]. Lithium Batteries - As of November 7, 2025, the price of lithium carbonate was 77,500 yuan/ton, showing a slight decrease [42]. Charging Piles - As of the end of September 2025, the total number of charging infrastructure units reached 18.063 million, a year-on-year increase of 57.99% [49].

Valuation Summary - The overall valuation of the A-share market as of November 7, 2025, shows the CSI All Share Index (excluding ST stocks) with a PE of 21.5x and a PB of 1.8x, positioned at the 80th and 41st historical percentiles respectively [2][3] - The Shanghai 50 Index has a PE of 11.9x and a PB of 1.3x, at the 64th and 39th historical percentiles [2][3] - The ChiNext Index has a PE of 41.3x and a PB of 5.2x, at the 58th and 60th historical percentiles [2][3] - The valuation of the semiconductor industry is notably high, with a PE of 99.7x, placing it at the 76th historical percentile [7] Industry Valuation Comparison - Industries with PE valuations above the 85th historical percentile include Real Estate, Retail, Chemicals, and IT Services [2][3] - Industries with PB valuations above the 85th historical percentile include Electronics (Semiconductors) and Communications [2][3] - Industries with both PE and PB valuations below the 15th historical percentile include Medical Services and White Goods [2][3] Sector Performance Tracking New Energy - The photovoltaic industry chain saw a price decline, with polysilicon futures down 6.2% and silicon wafer prices down 3.9% [3] - Battery material prices showed mixed trends, with cobalt down 3.2% and lithium hexafluorophosphate up 8.1% [3] Real Estate Chain - The price of rebar fell by 1.7%, while iron ore prices decreased by 3.4% [3] - Cement prices increased slightly by 0.1%, but demand remains weak [3] Consumer Sector - The average price of live pigs dropped by 4.6%, while wholesale pork prices rose by 2.4% [3] - The price index for liquor saw a slight decrease of 0.15% [3] Technology Sector - The semiconductor sales in China grew by 15.0% year-on-year in September 2025, indicating a positive trend in the sector [3] Commodity Sector - Brent crude oil prices fell by 2.1% to $63.7 per barrel, while coal prices increased due to stricter safety inspections and winter storage demand [3]

Investment Rating - The report maintains an "Outperform" rating for the electric power equipment and new energy sector [1] Core Insights - The photovoltaic sector shows signs of quarterly improvement in performance, despite a backdrop of overcapacity and significant reductions in capital expenditure [3][4] - The industry is currently in an adjustment cycle, with overcapacity and low product prices forcing companies to reduce operating rates and eliminate outdated production lines [4][5] - The performance of the photovoltaic sector is influenced by policy-driven demand surges, operational efficiency improvements, cost reductions, and decreased asset impairment provisions [15][37] Summary by Sections 1. Performance Recovery and Market Dynamics - The photovoltaic sector's performance has shown signs of recovery in Q2 2025, driven by policy-induced demand and operational improvements [15][37] - The overall revenue for 73 A-share photovoltaic companies reached CNY 490.5 billion in the first half of 2025, a year-on-year decline of 11.51%, while net profit dropped by 98.01% to CNY 1.62 billion [15][21] - The second quarter saw revenues of CNY 2,673.52 billion, reflecting a year-on-year decline of 8.85%, but net profit improved to CNY 5.81 billion, a significant recovery from losses in Q1 [3][15] 2. Subsector Performance Variability - The four main material sectors are experiencing a gradual recovery, with losses narrowing each quarter [4][37] - The photovoltaic equipment sector reported a revenue decline of 13.59% to CNY 246.67 billion, with net profit down 28.91% to CNY 33.68 billion due to weak downstream demand [5][21] - In contrast, the photovoltaic inverter sector achieved a revenue increase of 28.56% to CNY 680.38 billion, with net profit rising 44.21% to CNY 106.21 billion, driven by increased demand from domestic and overseas markets [9][21] 3. Investment Recommendations - The photovoltaic industry remains undervalued historically, with potential for valuation recovery as measures to combat excessive competition and improve product quality are implemented [11][39] - Investment focus should be on leading companies in subsectors such as energy storage inverters, BC batteries, perovskite batteries, photovoltaic films, photovoltaic glass, and leading firms in the polysilicon sector [11][39]

Core Insights - The report highlights the positive performance of the A-share market, driven by multiple favorable factors including the "14th Five-Year Plan" and improved US-China relations, which have boosted market risk appetite [11][12][14] - The report emphasizes the importance of focusing on high-growth sectors such as photovoltaic, aerospace software, and other emerging industries, which are expected to lead the market [11][13][14] Domestic Market Performance - The Shanghai Composite Index closed at 4,016.33 with a gain of 0.70%, while the Shenzhen Component Index rose by 1.95% to 13,691.38 [3] - The average P/E ratios for the Shanghai Composite and ChiNext are 16.34 and 50.24 respectively, indicating a suitable environment for medium to long-term investments [11][14] International Market Performance - Major international indices such as the Dow Jones and S&P 500 experienced slight declines of 0.67% and 0.45% respectively, while the Nikkei 225 saw a modest increase of 0.62% [4] Economic Overview - China's GDP for the first three quarters of 2025 reached 101.5 trillion yuan, growing by 5.2% year-on-year, surpassing the annual growth target of 5% [8] - The industrial added value increased by 6.2%, while retail sales grew by 4.5%, indicating a stable economic performance despite external pressures [8] Industry Focus - The report suggests continuous attention to high-prosperity sectors such as engineering machinery, shipbuilding, and robotics, which are expected to benefit from the "14th Five-Year Plan" [6][15] - The photovoltaic industry saw a slight correction in October after significant gains in previous months, with the industry index down by 1.39% [19][20] Investment Recommendations - The report recommends focusing on leading companies in the photovoltaic sector, particularly those involved in energy storage and advanced battery technologies, as they are expected to benefit from ongoing industry improvements [21][27] - In the automotive interior and exterior parts sector, the report notes a steady growth trajectory, with China's market share exceeding 30% of the global market, driven by increasing production and consumer demand [23][24][25] Sector Analysis - The electric power and utilities sector has shown strong performance, with the index rising by 4.71% in October, outperforming the broader market [29] - The report highlights the importance of monitoring the supply and demand dynamics in the coal and natural gas markets, as well as the impact of water conditions on hydropower generation [30][31]

Core Viewpoint - The photovoltaic sector in both Hong Kong and A-shares has shown strong performance, with significant price increases in various companies, driven by multiple favorable factors including price stabilization, policy expectations, and accelerated overseas expansion [1][6][7]. Group 1: Market Performance - The A-share photovoltaic equipment sector has seen substantial gains, with companies like Aiko Solar rising over 12% and LONGi Green Energy increasing by over 8% [1]. - In the Hong Kong market, solar stocks such as Flat Glass Group and Xinyi Solar have also risen by more than 5% [1]. - The photovoltaic sector has experienced a cumulative increase of over 8% since September 24, and a 45% increase from the year's low on April 9 [4]. Group 2: Supporting Factors - The recovery in the photovoltaic supply chain prices has been a key factor supporting market confidence, with prices for polysilicon, wafers, cells, and modules all rising [6]. - There are strong expectations for new policies aimed at regulating photovoltaic capacity, which have further boosted market sentiment [6]. - Recent reports indicate that the photovoltaic industry association held a meeting to discuss industry developments, reflecting high market attention towards policy changes [6]. Group 3: Overseas Expansion - Chinese photovoltaic companies are accelerating their overseas expansion, with significant orders from emerging markets like India, the Middle East, and Africa [7]. - Notable contracts include a 4GW solar project in Saudi Arabia worth approximately 17.65 billion yuan, and various agreements with countries like Pakistan and Iran for solar component supplies [7]. Group 4: Financial Performance and Outlook - Many photovoltaic companies faced pressure in the first half of 2025, with LONGi Green Energy reporting a revenue of 32.813 billion yuan, a year-on-year decline of about 14.83% [8]. - Despite losses, the reduction in loss margins indicates potential recovery, with market expectations shifting towards upcoming quarterly reports [8]. - Analysts believe the industry is entering a bottoming phase, with potential for a turnaround driven by improved fundamentals and policy support [9].

Core Viewpoint - The photovoltaic industry chain stocks experienced a strong rally on the 14th, with notable increases in share prices for major companies, indicating positive market sentiment and potential growth in the sector [1] Industry Summary - Since September, prices for polysilicon, silicon wafers, batteries, and photovoltaic modules have all risen, with upstream prices increasing at a higher rate than downstream prices [1] - Photovoltaic glass prices are gradually recovering due to production cuts by leading companies, reduced industry inventory, and a contraction in supply [1] - Central China Securities forecasts that future measures will include product sales price strategies to combat internal competition, mergers and acquisitions among companies, increased industry entry barriers, and enhanced product quality standards, which are expected to optimize the competitive landscape and industry ecosystem [1] - There is a potential for valuation recovery in the photovoltaic industry, with recommendations to focus on leading companies in specific sub-sectors such as energy storage inverters, Bifacial (BC) and perovskite batteries, encapsulants, photovoltaic glass, and polysilicon [1]

中原证券发布研报称，9月，多晶硅料、硅片、电池和光伏组件价格均出现上涨，但上游价格涨幅高于 下游。光伏玻璃受龙头企业减产，行业库存降低，供给量收缩等因素影响，价格逐步回暖。展望后市， 前期抢装后整体市场乏力，集中式项目拉动装机需求，考虑到终端组件价格承接力度以及反内卷措施的 影响，光伏产业链价格将趋于平稳。 消息面上，根据国家能源局数据，8月国内光伏新增装机7.4GW，同比下滑55.3%，环比下滑33.3%。东 吴证券指出，三季度国内终端需求支撑偏弱，排产端暂时小幅下降，政策引导光伏反内卷力度强，硅料 成为主要抓手，当前价格50元/kg+，硅片和电池顺价，组件待观察终端需求。 智通财经APP获悉，光伏股集体回落，截至发稿，新特能源(01799)跌7.36%，报8.31港元；福莱特玻璃 (06865)跌6.54%，报11.72港元；信义光能(00968)跌4.45%，报3.65港元；福耀玻璃(03606)跌2.46%，报 74港元。 ...

光伏股集体回落，截至发稿，新特能源(01799)跌7.36%，报8.31港元；福莱特玻璃(06865)跌6.54%，报 11.72港元；信义光能(00968)跌4.45%，报3.65港元；福耀玻璃（600660）(03606)跌2.46%，报74港元。 消息面上，根据国家能源局数据，8月国内光伏新增装机7.4GW，同比下滑55.3%，环比下滑33.3%。东 吴证券指出，三季度国内终端需求支撑偏弱，排产端暂时小幅下降，政策引导光伏反内卷力度强，硅料 成为主要抓手，当前价格50元/kg+，硅片和电池顺价，组件待观察终端需求。 中原证券发布研报称，9月，多晶硅料、硅片、电池和光伏组件价格均出现上涨，但上游价格涨幅高于 下游。光伏玻璃受龙头企业减产，行业库存降低，供给量收缩等因素影响，价格逐步回暖。展望后市， 前期抢装后整体市场乏力，集中式项目拉动装机需求，考虑到终端组件价格承接力度以及反内卷措施的 影响，光伏产业链价格将趋于平稳。 ...

部分光伏股早盘走高，截至发稿，新特能源(01799)涨7.07%，报9.24港元；福莱特（601865）玻璃 (06865)涨5.56%，报12.52港元；协鑫科技(03800)涨3.73%，报1.39港元；信义光能(00968)涨3.22%，报 3.85港元。 消息面上，9月以来，光伏产业链价格持续走高。中原证券（601375）发布研报称，9月，多晶硅料、硅 片、电池和光伏组件价格均出现上涨，但上游价格涨幅高于下游。光伏玻璃受龙头企业减产，行业库存 降低，供给量收缩等因素影响，价格逐步回暖。展望后市，前期抢装后整体市场乏力，集中式项目拉动 装机需求，考虑到终端组件价格承接力度以及反内卷措施的影响，光伏产业链价格将趋于平稳。 ...

Core Viewpoint - The solar energy sector is experiencing a price increase across the supply chain, with specific stocks showing significant gains in early trading. Group 1: Stock Performance - New Energy (01799) rose by 7.07%, reaching HKD 9.24 [1] - Flat Glass (06865) increased by 5.56%, reaching HKD 12.52 [1] - GCL-Poly Energy (03800) saw a rise of 3.73%, reaching HKD 1.39 [1] - Xinyi Solar (00968) gained 3.22%, reaching HKD 3.85 [1] Group 2: Price Trends - Since September, prices in the photovoltaic supply chain have been on the rise [1] - Multi-crystalline silicon, silicon wafers, cells, and photovoltaic module prices have all increased, with upstream prices rising more than downstream [1] - Photovoltaic glass prices are recovering due to production cuts by leading companies, reduced industry inventory, and a contraction in supply [1] Group 3: Market Outlook - The overall market is weak following a previous rush for installations, with centralized projects driving installation demand [1] - The stability of terminal module prices and the impact of anti-competitive measures are expected to lead to a stabilization of prices in the photovoltaic supply chain [1]