The new energy battery supply chain erupted once again today, July 27.
The Huabao New Energy Battery ETF (159071), which focuses on the energy storage supply chain, surged 3.28% in the afternoon, closing at the day's high and reclaiming its 5-day and 10-day moving averages.
Among the component stocks, Zijian Electronics hit the 20% daily limit, Xinfengguang and Guo'an Da rose over 10%, Shenling Environment gained over 9%, Nanyang Technology rose over 7%, and multiple stocks including Sunwoda and Magnelec gained over 6%. CATL rose over 4%, while Sungrow Power Supply and EVE Energy each gained over 2%.
On the news front, the latest data shows that the global power battery leader CATL has signed two sodium-ion battery energy storage orders: one for 5 GWh with the Dutch company Alfen and another for 2 GWh with Bulgaria's Solarpro, totaling 7 GWh.
On the evening of July 24, CATL announced a plan to use its own or self-raised funds to repurchase between no less than 20 billion yuan and no more than 40 billion yuan of its A-share shares at a price not exceeding 573 yuan per share. The repurchased shares will be cancelled to reduce the registered capital.
Notably, this is the largest buyback scheme in A-share history.
CITIC Securities points out that the current new lithium battery cycle is primarily driven by energy storage. The fundamental logic behind energy storage demand lies in the convergence of increased penetration of new energy power generation and declining costs of energy storage systems. The core drivers include Document No. 136, which pushes new energy into the market and widens peak-valley price spreads, and Document No. 114, which establishes a capacity pricing mechanism for energy storage, providing stable revenue expectations.
Looking ahead to 2027, CITIC Securities projects the lithium battery industry's growth rate could fall within a 24% to 32% range (with the actual rate potentially leaning above the midpoint). Current market pricing expectations are likely below 20%, indicating an expectation gap.
From a supply-demand perspective, if lithium battery growth exceeds 20% next year, materials like separators, copper foil, and aluminum foil will remain tight. If growth surpasses 28%, anodes and lithium carbonate could also move toward a tight balance.
Currently, the per-unit profitability of the lithium battery materials sector is generally within the historical 30th percentile. With a 15-20x PE as an anchor, the per-unit profitability implied by current stock prices is generally already lower than actual profitability levels. This suggests the market's current pricing for lithium battery energy storage anticipates full overcapacity by 2027. It is expected that once demand becomes clear, the market will revise this pricing.
Focusing on energy storage, with high "energy storage content"! Energy storage facilities address the core contradiction between electricity consumption and generation. Surging and uneven computing power electricity demand, combined with surging and uneven new energy generation, makes energy storage for smoothing power transmission a critical element of the era.
The underlying index for the Huabao New Energy Battery ETF (159071)—the Guozheng New Energy Battery Index—has over 80% weighting in electrical equipment, covering upstream and downstream sectors of the new energy storage battery industry. Its top ten heavyweight stocks include industry leaders like CATL, EVE Energy, Envicool, and Sungrow Power Supply, with a combined weight of over 60%.
Data source: Guozheng Index, as of June 30, 2026. Recent market fluctuations may be significant. Short-term gains or losses do not predict future performance. Fund investments may incur losses. Investors must invest rationally based on their own financial situation and risk tolerance, paying close attention to position and risk management. The stocks mentioned in the material are for illustration only and do not constitute any form of investment advice, nor do they represent the holdings or trading activities of any fund managed by the company. Data source: Index companies, Shanghai and Shenzhen stock exchanges. Fee description: Subscription and redemption agents may charge commissions at a rate not exceeding 0.3%. On-exchange trading fees are subject to actual charges by the securities company. No sales service fee is charged. Institutional view reference source: CITIC Securities, July 25, 2026, "The Sustained Growth of Energy Storage Will Drive the Lithium Battery Industry's Growth Rate to an Estimated 25%-32% Range by 2027."
Risk Warning: The Huabao New Energy Battery ETF passively tracks the Guozheng New Energy Battery Index. The base date for the index is December 31, 2014, and its release date is February 16, 2015. This fund is issued and managed by Huabao Fund. Distributing agencies do not bear investment or redemption responsibilities. Investors should carefully read fund legal documents such as the "Fund Contract," "Prospectus," and "Fund Product Summary" to understand the fund's risk-return characteristics and select products suitable for their own risk tolerance. The fund manager assesses the risk level of this fund as R3-Medium Risk, suitable for investors with a balanced (C3) or higher risk profile. Please refer to the sales institution for suitability matching opinions. Sales institutions (including the fund manager's direct sales and other sales institutions) conduct risk assessments on this fund according to relevant laws and regulations. Investors should promptly pay attention to suitability opinions issued by sales institutions and act based on their matching results. Suitability opinions from different sales institutions may not be consistent, and the fund product risk level assessment results issued by fund sales institutions must not be lower than those issued by the fund manager. The risk-return characteristics and fund risk level described in the fund contract may differ due to different factors considered. Investors should understand the fund's risk-return profile and carefully choose fund products based on their investment objectives, horizon, experience, and risk tolerance, bearing the risks themselves. Registration of this fund with the China Securities Regulatory Commission does not imply a substantive judgment or guarantee of the fund's investment value, market prospects, or returns. Past performance of the fund does not guarantee future results. The performance of other funds managed by the fund manager does not constitute a guarantee of this fund's performance. Fund investment carries risks. Invest with caution! MACD golden cross signal formed. These stocks are performing well! Massive amounts of information and precise interpretation can be found on the Sina Finance app. Editor: Yang Hongbu
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