Group 1: Perovskite Technology in Photovoltaics - Perovskite technology is considered one of the most promising next-generation photovoltaic technologies due to its high theoretical efficiency, low cost, and wide application scenarios [1] - By 2025, China has achieved a series of world-leading results in perovskite technology, continuously breaking world records in conversion efficiency [1] - Despite significant laboratory achievements, challenges remain for large-scale commercial application, particularly in uniformity and long-term stability of large-area production [1] - The mainstream companies in the industry are actively investing in perovskite technology and have made good progress, with expectations for commercial application by around 2030, initially in high-end markets [1] Group 2: Solid-State Batteries - Solid-state batteries are gaining traction due to their safety and high energy density, making them a key development direction for next-generation high-performance batteries [2] - The development of solid-state batteries has accelerated significantly under the dual drivers of policy support and market demand, with leading companies establishing pilot production lines [2] - The industry is expected to see solid-state batteries achieve small-scale production by around 2027, with broader applications in low-altitude economy and robotics by 2028-2029, and gradual entry into mid-to-high-end power sectors by 2030 [2] Group 3: Valuation of the New Energy Sector - The new energy sector has experienced a significant valuation compression from 2021 to 2024, with the photovoltaic index dropping approximately 40% in 2024 [3] - As of October 2025, the valuation of major photovoltaic companies is around 15 times the expected earnings for 2026, indicating that current stock prices do not fully reflect the industry's future growth potential [3] - The new energy sector is currently positioned at a relatively low valuation compared to other growth sectors, providing a compelling value proposition for investors seeking growth and valuation safety [3] Group 4: Future Outlook for the New Energy Sector - The new energy sector's valuation is expected to rise due to performance recovery, policy expectations, and technological innovation [4] - The "anti-involution" policy and improved supply-demand dynamics are anticipated to lead to rational price returns and enhanced corporate profitability, supporting valuation increases [4] - The introduction of the "14th Five-Year Plan" has provided a long-term vision for the industry, boosting confidence and attracting more long-term capital into the new energy sector [4] - The acceleration of industrialization for next-generation technologies like perovskite and solid-state batteries is expected to inject new growth momentum into the sector [4]

Core Viewpoint - The combination of policy, fundamentals, and capital flow is expected to create a positive synergy that will drive the sector to continue its upward trend [1][2]. Policy Perspective - The "anti-involution" policy and the "14th Five-Year Plan" are providing ongoing support for the industry. The "anti-involution" policy aims to combat vicious price wars and promote the exit of backward production capacity, which will systematically improve the competitive environment and profit expectations [1]. - The "14th Five-Year Plan" sets a high-quality development tone for the industry over the next five years, reinforcing the core position of new energy as a strategic emerging industry, with supportive policies expected to continue to emerge [1]. Fundamental Perspective - The improvement in supply-demand dynamics and the expectation of quarterly performance recovery are key factors determining the sustainability of the sector's market performance. The photovoltaic and lithium battery industries are seeing gradual improvements in supply-demand structures, with the photovoltaic industry expected to curb price wars and corporate profits projected to rebound by 2025 [1]. - The energy storage market is anticipated to maintain rapid growth, benefiting from sustained high demand in downstream sectors, leading to a quarterly performance recovery for related companies in the new energy supply chain starting from the second half of this year [1]. Capital Flow Perspective - Currently, institutional holdings in the new energy sector are relatively low, indicating potential for incremental capital inflow. The capital flow acts as an amplifier for market performance, and with the improvement in fundamentals and favorable policies, institutional interest is expected to rise [2]. - Passive capital has already begun to flow significantly into the sector, and as performance gradually materializes, more actively managed funds are likely to increase their allocations. New energy, as a long-term investment track with high certainty, is naturally attractive to long-term funds such as pension and insurance funds, suggesting a potential influx of capital into the sector [2]. - For ordinary investors, index-based investments are recommended as a more stable option, with various ETFs available to share in the industry's growth dividends [2].

Core Viewpoint - The renewable energy sector has experienced a significant rebound since mid-2025 after a three-year decline, driven by policy, demand, and technological advancements [1][2][3] Group 1: Market Performance - The Wande New Energy Index saw a 60% decline from its peak in October 2021 to its lowest point in April 2025, but has recently shown signs of bottoming out and recovery [1] - The recent rally in the renewable energy sector is characterized by a broad-based surge across key sub-sectors such as photovoltaics, lithium batteries, and energy storage [1][2] Group 2: Demand Drivers - The primary demand for renewable energy comes from the electric vehicle sector, which has maintained strong sales due to new model releases and upgraded trade-in policies [2] - The energy storage sector is also experiencing growth, transitioning from policy-driven demand to economically driven demand, aided by declining costs and technological advancements [2] Group 3: Future Outlook - Despite recent fluctuations due to U.S.-China trade tensions, the renewable energy sector is expected to continue its upward trajectory, supported by policy benefits and improving supply-demand dynamics [3] - The current valuation of the renewable energy sector remains relatively low compared to historical levels, indicating potential for growth as performance improves [3]

Core Viewpoint - The ETF market shows mixed performance with significant movements in various ETFs, indicating potential investment opportunities in index ETFs for rebound strategies [1] Group 1: ETF Performance - The Super Large Cap ETF (510020) leads with a gain of 10.00% [1] - The Carbon Neutral 50 ETF (159861) increases by 1.70% [1] - The Hong Kong Stock Connect Innovative Drug ETF (工银, 159217) rises by 1.28% [1] - The Pension ETF (516560) experiences a decline of 0.75% [1] - The Gold Stock ETF Fund (159322) falls by 0.72% [1] - The Hong Kong State-Owned Enterprises ETF (513810) decreases by 0.71% [1] Group 2: Investment Strategy - The recommendation is to buy index ETFs to capitalize on market rebounds, focusing on leading market players [1]