Citic Securities: Photovoltaic Capacity Consolidation Progresses Slowly; Power Equipment Focuses on Performance Realization
According to reports, Citic Securities released a research report stating that in the lithium battery sector, the sensitivity of carbonates has decreased due to reduced production information, while US policies remain intense this week. Looking ahead to the second half, demand is expected to exceed expectations. In power equipment, AIDC and export boards show signs of warming up. Focus is on companies' performance realization, with exports, high-pressure equipment, and external (installation) expected to have a positive impact.
Citic Securities Key Points:
Power Equipment: This week's AIDC and export boards show signs of warming up. Citic Securities believes that [1] AIDC will continue to maintain a high level; [2] attention is focused on the release of high-pressure equipment orders in H2, with expectations for exports and high-pressure equipment to have a positive impact; [3] power transformer exports increased by 40%+ in Q1-Q2, with expectations for exports, high-pressure equipment, and external (installation) to have a positive impact.
Lithium Batteries: The sensitivity of carbonates has decreased due to reduced production information, while US policies remain intense this week. Looking ahead to the second half, demand is expected to exceed expectations, with recommendations for companies that will have stable or catalytic Q2 and Q3 performances.
Photovoltaic: Under the condition of not selling below full cost, the price of multi-crystalline silicon is supported by its cost side. After capacity consolidation, control production is a core contradiction affecting profitability. Energy storage aspects are concerned about Q2 performance possibly exceeding expectations.
Wind Power: In recent weeks, the wind power sector has shown relatively low performance and attention levels. Citic Securities believes that the market is significantly underestimating the benefits of improved wind turbine prices for wind turbine companies, with key recommendations for main machines and Haifeng segments.
Hydrogen: This week's green ammonia production from the remote prospecting project in Dalian Port marks the world's first use of 100% green power for ship-borne hydrogen fuel refueling. Domestic preliminary formation of "green aromas" and "green ammonia" production capabilities have put industry demand on hold.
Robotics: The WAIC sector has retreated slightly. Recommendations are to focus on companies with strong financial backing, comprehensive management abilities, and overseas factory layouts; and solution providers that will lead the way in the second half for automatic demonstration projects.
Risk Warning: [1] Unexpected decline in downstream new energy automobile production and sales; [2] unexpected surge in raw material prices; [3] insufficient policy support.