Pacific Securities: Focus on Bottom-Fishing Opportunities as New Technologies Advance and Upstream Supply-Demand Dynamics Improve

Stock News12:06

Pacific Securities released a research report highlighting the importance of strategic repositioning in the new energy sector amid market lows, driven by continuous technological advancements and improving upstream supply-demand conditions. The firm emphasized opportunities in segments with enhanced pricing power in mid-upstream industries, noting that lowered expectations create fresh entry points, with current conditions favoring leading players and upstream flexibility. Initial progress in photovoltaic (PV) "anti-involution" efforts also presents bottom-fishing opportunities. Key insights include:

**New Energy Vehicle (NEV) Chain: Upcycle Begins** 1. **Battery Innovations Gain Traction**: - BMW’s next-gen iX3, equipped with Eve Energy’s large cylindrical cells, achieved 1,007.7 km in real-road testing (exceeding its 805 km WLTP rating). Eve Energy plans a ~30GWh large cylindrical battery plant near BMW’s Hungary facility (2026 production). Beneficiaries: CATL, Eve Energy, Putailai. - Solid-state battery progress: Industry leaders like Weilan New Energy, Ganfeng Lithium, and Hyperstrong discussed lab achievements (824Wh/kg density, targeting 1,000Wh/kg), adopting a dual-path strategy—full solid-state for high-value robotics/low-altitude economy and semi-solid-state for energy storage/entry-level EVs. - QuantumScape (QS) signed solid-state battery deals with global automakers.

2. **Lithium Battery Cathode Sector Optimism**: - LFP demand surge expected by 2026 (5.8M tons vs. 3.9M tons in 2025), with tight supply for fourth-gen materials. Beneficiaries: Hunan Yuneng, Ronbay Technology, Tinci Materials. - Rising LFP costs (Nov: ¥14,704.8/ton avg, up ¥279.3 MoM). - Ronbay’s acquisition of Guizhou Xinren (93.2% stake) bolsters LFP material capacity (60k tons/year).

**PV/Storage Chain: Anti-Involution Progress** - Major PV firms drafted an industry self-regulation pact, proposing export tax rebate cancellations, capacity controls (80–100k tons silicon by 2026), and 70%+ utilization rates. Beneficiaries: LONGi Green Energy, Aiko Solar, GCL Tech. - MIIT outlined 2026 priorities:产能调控, innovation, standards, and global collaboration to curb恶性竞争.

**AI+New Energy & Wind Power: Emerging Markets** 1. **Robotics Breakthroughs**: - CATL launched the world’s first humanoid robot ("Xiao Mo") for battery production. - Midea unveiled its six-limbed robot "Milo U," targeting 30% efficiency gains in smart factories.

2. **Wind Power Outperforms**: - Jan–Nov 2025 saw 117.97GW wind projects (91.33% onshore), with top 5 OEMs (Goldwind, Envision, etc.) holding 68.02% share. Offshore wind prices rose MoM in November. - Dajin Heavy Industries began core component production for Poland’s BC-Wind project (27 monopiles/transition pieces, 2026 delivery).

**Risks**: Weak downstream demand, intensified competition, and slower tech advancements.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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