Central China Securities has released a research report stating that as of May 18, 2026, the valuation of the lithium battery and ChiNext indices are 30.62 times and 49.65 times, respectively. Considering the industry's development prospects and valuation levels, the firm maintains a "Stronger Than the Market" rating for the sector. Based on the development trends of the lithium battery industry, the characteristics of the domestic and international new energy vehicle industry, price movements across the lithium battery supply chain, and the performance overview of sub-sectors, it is recommended to continue focusing on four main investment themes. The key views of Central China Securities are as follows:
The lithium battery index has outperformed the CSI 300 index in 2026. Since the beginning of the year, the lithium battery index has generally performed better than the CSI 300 index. As of May 18, the lithium battery index has risen by 17.08%, outpacing the CSI 300 index by 12.68 percentage points. The performance of lithium battery stocks in Henan has been weaker than the sector index.
Sector performance continues to grow, with Henan-based lithium battery stocks accounting for a low proportion of total performance. In 2025, the lithium battery sector achieved revenue of 2.53 trillion yuan, a year-on-year increase of 12.31%; net profit was 128.188 billion yuan, up 26.39% year-on-year. In the first quarter of 2026, sector revenue reached 661.4 billion yuan, growing 25.24% year-on-year, with 83.65% of companies reporting positive growth. Net profit was 54.102 billion yuan, an increase of 61.36% year-on-year, with 68.27% of companies reporting positive growth. There are three listed lithium battery companies in Henan, accounting for 2.88% of the total number in the sector. The revenue and net profit scale of Henan-based lithium battery companies are relatively small, with total revenue fluctuating around 1.1% of the sector total, while net profit shows greater volatility. In 2025, the total revenue of Henan-based lithium battery companies increased by 13.38% year-on-year, but net profit was in the red. In the first quarter of 2026, total revenue grew by 31.68%, with net profit reaching 263 million yuan.
Power sector maintains growth, energy storage shipments exceed expectations. From January to April 2026, sales of new energy vehicles in China reached 4.306 million units, a year-on-year increase of 0.16%, accounting for 44.97% of total vehicle sales. Exports amounted to 1.385 million units, surging 116.74% year-on-year. Total production of power and energy storage batteries in China was 671.3 GWh, up 51.0% year-on-year, with exports of 115.8 GWh, accounting for 19.3% of cumulative sales. In the first quarter of 2026, the share of energy storage battery shipments in China reached 42.86%, a significant increase of 9.26 percentage points compared to 2025. Total shipments of energy storage lithium batteries in China for the first quarter of 2026 were 225 GWh, a year-on-year increase of 139%.
Overall price increase across the industry supply chain. Since 2026, the average prices of key materials in the lithium battery supply chain have generally risen compared to 2025. The underlying logic includes sustained demand growth, capacity rationalization after years of price adjustments in the supply chain, and increased operating rates, though the drivers vary across different sub-products. As of May 15, lithium carbonate prices stood at 192,000 yuan per ton, up 60.0% from the beginning of 2026, while lithium hydroxide prices increased by 62.0% from the start of the year.
Risk warnings: Domestic and international macroeconomic downturn exceeding expectations; new energy vehicle sales falling short of expectations; industry policy implementation weaker than anticipated; intensifying industry competition; significant price fluctuations in sub-sectors; systemic risks.
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