This week, the Shanghai Composite Index reclaimed the 4,000-point mark, drawing widespread market attention. However, for regular readers of our analysis, this development aligns perfectly with our reiterated view that the A-share bull market has only entered its second phase.
As the A-share market continues its upward trajectory, what emerging opportunities merit attention? Our research has identified a promising long-term growth sector—new energy storage—that could become the market's next leading theme. Notably, prominent investors including "super retail investors" have recently entered this space (specific stock picks detailed below).
The Trillion-Yuan Sector: Advanced Energy Storage Following our series of bullish A-share market analyses, the Shanghai Index has now firmly established itself above 4,000 points, with Friday's trading consolidating around this psychological barrier.
Sector-wise, lithium battery electrolytes, phosphorus chemicals, and solar thermal power concepts have led recent gains, all posting over 10% returns in the past five trading days (as of November 7 midday close). Standout performers include Huasheng Lithium, Baose Co., and Jinpan International—all connected to the advanced energy storage sector, which encompasses all non-pumped hydro energy storage technologies.
Industry Breakdown: Advanced energy storage includes electrochemical, compressed air, flywheel, electromagnetic, thermal, and hydrogen storage technologies. The industrial chain comprises: - Upstream: Materials/equipment (cathode/anode materials, separators, electrolytes, production equipment) - Midstream: Battery manufacturing/system integration (cells, battery packs, ESS integration including BMS/EMS/PCS) - Downstream: Applications (generation side, grid side, user side, telecom/data centers)
Market Growth: Global advanced energy storage installations reached 74.1GW/177.8GWh in new capacity last year (up 62.5%/61.9% YoY), with China contributing 43.7GW/109.8GWh (up 103%/136% YoY). The National Energy Administration notes China's advanced storage sector has directly driven over 200 billion yuan in project investment during the 14th Five-Year Plan period, with total industrial chain investment exceeding 1 trillion yuan.
Sector Performance Highlights The sector's robust growth is reflected in corporate earnings, with multiple energy storage companies reporting stellar Q3 results:
- Shanshan Co.: The dual-core business (polarizers/anode materials) saw net profit surge 1,121.72% YoY to 284 million yuan, making it one of few A-share companies with >10x earnings growth. - Other top performers: GoodWe, Corun, Guoxuan High-Tech, CL Electronics, and Hopewell all delivered >100% net profit growth (see Table 1).
Institutional and Retail Investor Activity Major investors have significantly increased positions in 20 energy storage stocks during Q3: - National Team: Social Security Fund 114 took new positions in BYD - Retail Investors: Fang Wenyan (associated with super investor Zhang Jianping) entered Lead Intelligent - Institutional: Gao Yi's Lin Shan 1 Fund established positions in CNGR Advanced Material Notably, Tycorun attracted simultaneous new positions from four institutional investors including CITIC Securities. Social Security Fund 117 expanded its stake in EVE Energy, while retail investor Gao Yaping maintained her position in Corun unchanged.