Core Viewpoint - The domestic lithium iron phosphate (LFP) battery installation volume is expected to reach a new high, driven by market demand and the increasing acceptance of LFP batteries due to their safety, cost-effectiveness, lifespan, and resource sustainability advantages [17]. Group 1: Market Performance - In the period from January to November 2025, the domestic installation volume of LFP batteries is approximately 490 GWh, representing a year-on-year growth of 55% and a market share of 78.5%, which is an increase of 10 percentage points compared to the same period last year [5][4]. - The market share of LFP batteries is close to the peak of 81% reached in 2014, with only a 2.5% difference, raising the question of whether it will surpass this peak again [5]. Group 2: Market Drivers - The significant increase in the share of LFP batteries is fundamentally different from 2014, as it is now primarily market-driven, particularly in the passenger vehicle sector, whereas in 2014, it was mainly policy-driven, focusing on the bus sector [8]. - The proportion of new vehicles equipped with LFP batteries has remained between 90% and 96% this year, indicating a growing preference among manufacturers for LFP technology [10]. Group 3: Vehicle Models and Growth - The number of passenger vehicle models equipped with LFP batteries has increased from 213 in the past three years to 536 by November this year, with popular models like Geely Xingyuan, Xiaomi SU7, and XPeng MONA M03 contributing to this growth [13]. - Specific vehicle installation numbers and year-on-year growth rates for LFP battery models include: - Geely Xingyuan: 417,935 units (1214%) - Hongguang MINI EV: 405,752 units (81%) - Xiaomi SU7: 161,753 units (277%) - XPeng MONA M03: 161,142 units (398%) [14]. Group 4: Competitive Landscape - The top 10 companies in the domestic LFP battery installation market accounted for 95.3% of the total volume from January to November 2025, with companies like CATL, EVE Energy, and others showing steady growth over the past three years [16].

Core Insights - The domestic lithium iron phosphate (LFP) battery installation volume is projected to reach approximately 490 GWh from January to November 2025, representing a year-on-year growth of 55% and a market share of 78.5%, an increase of 10 percentage points compared to the same period last year [1][5]. Group 1: Market Trends - The significant increase in the market share of LFP batteries is primarily driven by market demand rather than policy incentives, contrasting with 2014 when policy was the main driver [3]. - The proportion of new vehicles equipped with LFP batteries has remained between 90% and 96% this year, with a notable increase from 92% to 94.5% in the second half of the year, indicating a growing preference among manufacturers for LFP technology [5]. Group 2: Product Offerings - The number of new energy passenger car models equipped with LFP batteries has risen from 213 to 536 over the past three years, with popular models like Geely Xingyuan, Xiaomi SU7, and XPeng MONA M03 accelerating production and delivery, further boosting the market share of LFP batteries [8]. Group 3: Competitive Landscape - The top 10 companies in the domestic LFP battery installation market accounted for 95.3% of the total volume from January to November 2025, with companies like CATL, EVE Energy, and Xinwangda showing steady growth over the past three years [10]. - CATL's market share is projected to increase from 34.42% in 2023 to 36.79% in 2025, while BYD's share is expected to decline from 43.49% to 29.19% during the same period [11].

如果将时间线拉长，眼下磷酸铁锂的"涨声一片"与此前锂电产 业中上游长达三年的价格下行态势形成了鲜明对比。 作者：濮振宇 封图：图库 作为磷酸铁锂正极材料最核心的原材料，碳酸锂的成本占比超过40%，其价格走势直接决定了行 业的基本成本面。卓创资讯数据显示，12月17日，富宝电池级碳酸锂市场价格为9.72万元/吨至 10万元/吨，相较于年中的低点，涨幅超过五成。 除了碳酸锂，构成磷酸铁锂前驱体磷酸铁的各类化工原料，自2025年第四季度起也呈现普涨格 局，根据中国化学与物理电源行业协会数据，11月，磷酸、98%磷酸一铵和硫酸亚铁的平均价格 环比分别上涨6.9%、8.5%和3.1%。 锂资源价格在2025年下半年上涨的背后，是锂电产业在下游储能市场与新能源汽车市场旺盛需求 刺激下，供需关系的重新平衡。 某头部锂盐企业告诉经济观察报，2024年到2025年年中锂价是逐步见底的走势，不过即便价格持 续下行，需求整体是持续增长的，只是在锂价高位周期，锂资源供应释放较多，叠加锂盐厂产能投 放速度阶段性超过了需求增长速度，在2024年到2025年6月期间碳酸锂市场累库较多，给价格造 成了压力。至2025年7月，市场逐步认知到下 ...

Core Insights - The report indicates a stable growth in the sales of new energy vehicles (NEVs) in China, with November 2025 sales reaching 1.823 million units, a year-on-year increase of 20.6%, resulting in a penetration rate of 53.2% [1][2] - The cumulative sales of NEVs from January to November 2025 reached 14.78 million units, reflecting a year-on-year growth of 31.24% and a penetration rate of 47.5% [1][2] - The installed capacity of power batteries in November was 93.5 GWh, marking a year-on-year increase of 39%, with a cumulative installed capacity of 672 GWh from January to November, up 42% year-on-year [1][2] New Energy Vehicle Market - The growth in NEV sales is attributed to major manufacturers accelerating their transition to new energy, leading to an optimistic outlook for the market [2] - The penetration rate of NEVs is expected to continue increasing as the industry evolves [2] Power Battery Market - The installed capacity of lithium iron phosphate (LFP) batteries in November was 75.3 GWh, accounting for 81% of total installations, with a year-on-year growth of 40% [2] - The installed capacity of ternary batteries was 18.2 GWh, representing 19% of total installations, with a year-on-year increase of 33.8% [2] - Cumulatively, LFP battery installations from January to November reached 545.4 GWh, also 81% of total installations, with a year-on-year growth of 57% [2] - Ternary battery installations during the same period totaled 125.7 GWh, accounting for 19% of total installations, with a modest year-on-year growth of 1% [2] Leading Companies in Power Battery - CATL (Contemporary Amperex Technology Co., Limited) had an installed capacity of 40.9 GWh in November, representing 44% of total installations, with a year-on-year growth of 42% [3] - BYD (Build Your Dreams) had an installed capacity of 19 GWh in November, accounting for 20% of total installations, with a year-on-year increase of 13% [3] - From January to November 2025, CATL's cumulative installed capacity was 287.7 GWh, 43% of total installations, with a year-on-year growth of 36% [3] - BYD's cumulative installed capacity during the same period was 148.2 GWh, 22% of total installations, with a year-on-year increase of 26% [3] Industry Performance - The power equipment industry experienced a weekly change of 1.19%, ranking 5th among 31 primary industries, outperforming the CSI 300 index [4] - The Shanghai Composite Index, CSI 300, Shenzhen Component Index, and ChiNext Index had weekly changes of -0.3%, -0.1%, 0.8%, and 2.7% respectively [4] - In sub-sectors, the performance varied, with electric motors II, other power equipment II, photovoltaic equipment, wind power equipment, batteries, and grid equipment showing different weekly changes [4] Stock Performance - The top five stocks in the power equipment industry by weekly gains were Maiwei Co., Tongguang Cable, Feiwo Technology, Hongxiang Co., and Aikesai Bo [5] - The top five stocks by weekly losses included Huarui Co., Binhai Energy, Tianji Co., Haike Xinyuan, and Yihua Tong [6]

Core Insights - The report indicates a positive outlook for the electric vehicle (EV) market in China, with significant growth in sales and battery installation volumes expected through 2025 [1][2]. Electric Vehicle Market - In October 2025, China's EV sales reached 1.715 million units, marking a year-on-year increase of 19.9% and a penetration rate of 51.6% [1][2]. - From January to October 2025, total EV sales amounted to 12.943 million units, reflecting a year-on-year growth of 32.75% and a penetration rate of 46.7% [1][2]. - The acceleration of major manufacturers transitioning to new energy is contributing to the optimistic market outlook [1][2]. Battery Installation Volume - In October 2025, the installation volume of power batteries in China was 84 GWh, representing a year-on-year increase of 42% [2]. - Cumulatively, from January to October 2025, the total installation volume of power batteries reached 578 GWh, also showing a year-on-year growth of 42% [2]. Lithium Iron Phosphate Battery Performance - In October 2025, the installation volume of lithium iron phosphate batteries was 67.5 GWh, accounting for 80% of total installations, with a year-on-year growth of 44% [2]. - For the same period, ternary battery installations were 16.5 GWh, making up 20% of total installations, with a year-on-year increase of 35.2% [2]. - From January to October 2025, lithium iron phosphate battery installations totaled 470.1 GWh, representing 81% of total installations and a year-on-year growth of 60% [2]. - Ternary battery installations during this period were 107.5 GWh, accounting for 19% of total installations, with a year-on-year decrease of 3% [2]. Leading Companies in Battery Installation - In October 2025, CATL's battery installation volume was 36.1 GWh, representing 43% of total installations and a year-on-year growth of 43% [3]. - BYD's battery installation volume was 17.9 GWh, accounting for 21% of total installations, with a year-on-year increase of 13% [3]. - From January to October 2025, CATL's cumulative battery installation volume was 246.8 GWh, maintaining a 43% share and a year-on-year growth of 35% [3]. - BYD's cumulative battery installation volume was 129.1 GWh, representing 22% of total installations, with a year-on-year increase of 28% [3]. Industry Performance - The electric equipment industry experienced a weekly decline of 0.80%, ranking 23rd among 31 primary industries [4]. - The industry outperformed the CSI 300 index during the same period [4]. - The weekly performance of major indices was as follows: Shanghai Composite Index -0.18%, CSI 300 -1.08%, Shenzhen Component Index -1.40%, and ChiNext Index -3.01% [4]. Stock Performance - The top five stocks in the electric equipment industry by weekly gain were: Huasheng Lithium Battery, Haike New Source, ST Hezhong, Shida Shenghua, and Fangyuan Co [5]. - The top five stocks by weekly loss were: Liangxin Co., Jinpan Technology, Magmi Tech, Zhongheng Electric, and Oulu Tong [6]. Investment Strategy - The report suggests focusing on companies within the power battery supply chain that are technologically advanced and hold significant market influence, such as CATL [7].

Core Viewpoint - Zhengli New Energy (03677) is experiencing a stock price increase, attributed to upcoming industry events and advancements in solid-state battery technology [1] Group 1: Company Developments - Zhengli New Energy's stock rose nearly 5%, currently trading at 10.04 HKD with a trading volume of 44.65 million HKD [1] - The company is set to launch its 100 MWh solid-state battery pilot line in the first half of 2026, marking a significant step towards industrialization of solid-state batteries [1] - The company is developing a diverse product portfolio driven by market demand and technology, including lithium iron phosphate and ternary materials for various applications such as electric vehicles, electric aircraft, and electric ships [1] Group 2: Market Position and Projections - In 2024, Zhengli New Energy is projected to capture a 2.0% market share in domestic installations of lithium iron phosphate batteries and 1.8% in PHEV batteries [1] - The company is expected to dominate the domestic market for HEV battery packs, with a market share exceeding 70% in collaboration with New Zhongyuan Toyota [1] - The company is noted for its strong customer resources, intelligent manufacturing capabilities, and cost control advantages, indicating a turning point in its fundamentals [1]

Core Viewpoint - Zhengli New Energy (03677) is experiencing a stock price increase, attributed to upcoming industry events and advancements in solid-state battery technology [1] Group 1: Company Developments - Zhengli New Energy's stock rose nearly 5%, currently trading at 10.04 HKD with a transaction volume of 44.65 million HKD [1] - The company is set to launch its 100MWh solid-state battery pilot line in the first half of 2026, marking a significant step towards industrialization of solid-state batteries [1] Group 2: Industry Insights - The 12th China (Suzhou) International Summit on Battery New Energy Industry will take place from November 11-13, indicating a busy week for the solid-state battery sector [1] - CITIC Securities predicts that the solid-state battery industry will see a surge in new technologies due to the upcoming conferences [1] Group 3: Market Position and Projections - According to CICC, Zhengli New Energy is developing a diverse product portfolio driven by market demand and technology, covering various battery types and applications [1] - The company is projected to achieve a 2.0% market share in domestic installations of lithium iron phosphate batteries and 1.8% in PHEV batteries by 2024 [1] - New Zhongyuan Toyota's HEV battery pack is expected to capture over 70% of the domestic market share [1] - The company is noted for its strong customer base, smart manufacturing, and cost control advantages, indicating a turning point in its fundamentals [1]

Investment Highlights - Company is covered for the first time by CICC with an "outperform" rating and a target price of HKD 11.40, based on a PE valuation method corresponding to a multiple of 26.0x for 2026. The company is recognized as a leading manufacturer of power and energy storage batteries in China [1] - The penetration rate of new energy vehicles continues to rise, with emerging application scenarios opening up growth opportunities. According to Frost & Sullivan, it is expected that China's power battery installation will reach 1,961.4 GWh by 2029, with a CAGR of 29.0% from 2024 to 2029. Additionally, the demand for energy storage, electric ships, and electric aircraft is rapidly growing, creating long-term growth potential for lithium batteries [1] - The company offers a comprehensive product portfolio to meet diverse customer needs, developing multi-path product combinations driven by market demand and technology. The company covers various material types such as lithium iron phosphate and ternary materials, as well as multiple power types like BEV and PHEV, across applications including electric vehicles, electric aircraft, and electric ships. In 2024, the company's domestic installation share for lithium iron phosphate power batteries is projected to be 2.0%, while the share for PHEV batteries is 1.8%, and the market share for the HEV battery pack of New Zhongyuan Toyota exceeds 70% [1] Company Fundamentals - The company is experiencing a turning point in its fundamentals, leveraging flexible manufacturing to achieve high utilization rates and cost control advantages. Despite smaller revenue and shipment scale compared to second and third-tier battery manufacturers, the company is leading the way in fundamental improvements. Looking ahead, the company is expected to continue expanding its customer base and further release scale effects, driving sustained profit improvement [2] - The company has crossed the threshold of scalable profitability, with profitability expected to steadily increase [2] - Potential catalysts for growth include the continuous acquisition of new orders and better-than-expected profit improvements [2] Earnings Forecast and Valuation - The company’s EPS is projected to be RMB 0.20 and RMB 0.40 for 2025 and 2026, respectively, with a CAGR of 236% from 2024 to 2026. The current stock price corresponds to a 21.2x P/E for 2026, while the company is given a 26.0x P/E for 2026, leading to a target price of HKD 11.40, indicating a potential upside of 20.6% [2]

Core Viewpoint - CICC initiates coverage on Zhengli New Energy (03677) with an "outperform" rating and a target price of HKD 11.40, indicating a potential upside of 20.6% based on a PE valuation method with a multiple of 26.0x for 2026 [1] Group 1: Company Performance and Projections - The company is a leading manufacturer of power and energy storage batteries in China, with projected EPS of CNY 0.20 and CNY 0.40 for 2025 and 2026 respectively, reflecting a CAGR of 236% from 2024 to 2026 [1] - The company has crossed the inflection point of scalable profitability, with expectations for steady improvement in profitability [1] Group 2: Industry Growth and Market Opportunities - The penetration rate of new energy vehicles is continuously increasing, with the Chinese power battery installation expected to grow to 1,961.4 GWh by 2029, corresponding to a CAGR of 29.0% from 2024 to 2029 [2] - Emerging application scenarios such as energy storage, electric ships, and electric aircraft are rapidly growing, opening long-term growth opportunities for lithium batteries [2] - The company is well-positioned to benefit from the growth of second and third-tier battery manufacturers leveraging multi-technology and multi-market strategies [2] Group 3: Product Diversification and Customer Demand - The company develops a multi-path product portfolio driven by market demand and technology, covering various materials and power types, including BEV and PHEV, as well as applications in electric vehicles, electric aircraft, and electric ships [3] - The domestic market share for the company's lithium iron phosphate power batteries is projected to be 2.0% in 2024, with PHEV battery market share at 1.8%, and over 70% market share for the HEV battery pack in collaboration with New Zhongyuan Toyota [3] Group 4: Competitive Advantages and Future Outlook - The company benefits from flexible manufacturing leading to high utilization rates and cost control advantages, positioning it favorably among second and third-tier battery manufacturers despite smaller revenue and shipment scales [4] - The company is expected to continue expanding its customer base and releasing scale effects, driving sustained profitability improvements [4]

Core Viewpoint - The company expects continued growth in the lithium iron phosphate market, driven by increasing domestic installation rates and global demand in both the automotive and energy storage sectors [1] Group 1: Automotive Market - In the domestic market, the installation rate of lithium iron phosphate batteries has reached 80% this year [1] - Overseas automakers are gradually switching to lithium iron phosphate batteries, indicating a shift in global automotive trends [1] Group 2: Energy Storage Market - The global demand for energy storage has seen a significant surge this year, with rapid growth in markets outside of China, including North America, Europe, the Middle East, Southeast Asia, and South America [1] - The company anticipates that the lithium iron phosphate market will maintain high growth rates next year [1]