CICC has released a research report indicating that as the peak season for September and October approaches, there is a favorable outlook for allocation opportunities in the lithium battery sector amid capital rebalancing. Since the sector's adjustment in April, the firm believes the primary factors are weak demand expectations for 2027, while the reality of strong fundamentals has not shifted significantly. With current valuations offering a solid margin of safety—industry leaders trading at under 15x forward earnings for 2027—and the upcoming peak season, CICC is reiterating its constructive stance on lithium battery allocation at this juncture.
Within the new energy supply chain, the report highlights several key trends. In wind power, the firm is optimistic about an early rebound driven by improving installations and utilization rates. August data showed continued improvement in both installations and operating hours, though EPC prices have begun to diverge. The turbine procurement landscape is showing clear advantages for leading manufacturers, and CICC expects wind equipment makers to lead the sector's recovery. For solar, domestic installations are recovering month-over-month, but price increases along the supply chain face resistance. The firm projects limited earnings recovery in the third quarter, with photovoltaic glass experiencing a second round of production cuts. Inverter orders remain solid for Q3 with energy storage systems providing support, though grid-connection side faces shipment pressure. CICC favors segments where cost leadership and efficiency differentiation can be established.
In energy storage, the Federal Communications Commission has updated its "Coverage List" to include foreign-produced grid-connected power inverters and advanced robotics equipment. This primarily affects future product sales, while products that have already obtained FCC certification remain unaffected for now. On power equipment, the National Energy Administration convened a deployment meeting for new grid infrastructure construction, proposing a new architecture for coordinated main grid, distribution network, and microgrid operations. The initiative calls for accelerating approvals and construction of major grid projects such as transmission corridors, while promoting adoption of new technologies. CICC maintains a positive outlook on steady upward demand for grid investment.
Turning to AIDC and industrial control equipment, the report notes that Nvidia's earnings guidance exceeded expectations, while Alibaba and Baidu have posted robust capital expenditure growth. Leading companies across various segments are accelerating systematic layout, and CICC believes the upgrade in computing density will drive growth in power supply and liquid cooling segments. In the industrial control and robotics space, Pengxing has completed a $900 million financing round, UBTech sold 16,000 humanoid robots in the first half of 2026, and the first world model Atlas has been launched. Leadshine's frameless torque motors have over 1 million units in order backlog, while Kinco's robotics revenue grew 62.3% year-on-year. The firm believes that as humanoid robot mass production approaches, industrial control companies stand to benefit significantly.
Regarding estimates and recommendations, CICC maintains its earnings forecasts, ratings, and target prices for relevant companies. Key risks include macroeconomic downturn, raw material price fluctuations, policy implementation falling short of expectations, and tariff changes.