Huaxi Securities released a research report stating that August energy storage EPC tender and award data rose month-on-month, with abundant reserve projects across the industry. A large number of independent energy storage and renewable energy paired storage projects are expected to gradually convert into awarded orders, and the domestic large-scale storage installation prosperity continues to rise. Global AIDC construction is scaling up, and multiple segments of the industrial chain are expected to maintain high prosperity. Domestic lithium battery production scheduling in October grew 3.9% month-on-month, with the industrial chain entering its traditional peak season and demand expected to reach new heights. The lithium battery sector has undergone sufficient correction, and as market expectations recover subsequently, the top pick is lithium battery leader CATL (300750.SZ). In addition, Dajin Heavy Industry (002487.SZ) has partnered with Ulstein to develop a new-generation offshore wind installation vessel, and the firm continues to hold a positive outlook on the company's development prospects.
New Energy: August Energy Storage EPC Tender Awards Rise Month-on-Month, Domestic Large-Scale Storage Prosperity Continues to Climb
August energy storage EPC tender and award data rose month-on-month, with abundant reserve projects across the industry, and tender scale exceeding awarded and landed scale. A large number of independent energy storage and renewable energy paired storage projects are expected to gradually convert into awarded orders, and industry construction still possesses upward elasticity. The firm believes that with abundant domestic energy storage project reserves, combined with improved expectations for system operation fees, the domestic large-scale storage installation prosperity continues to rise.
Dajin Heavy Industry Partners with Ulstein to Develop New-Generation Offshore Wind Installation Vessel
On this basis, the company has partnered with Ulstein to develop a new-generation installation vessel, successfully incorporating installation business into its portfolio and achieving a strategic upgrade from "product supplier" to "system service provider." For Dajin Heavy Industry itself, the successful implementation of the integrated delivery model means that its business scope extends from manufacturing downstream, further broadening its profit footprint. At the same time, multi-segment coordination also helps smooth performance fluctuations from a single manufacturing segment. More importantly, this model enhances project delivery certainty by reducing developers' coordination risks across multiple interfaces including manufacturing, sea transportation, home port, and installation, thereby bringing the company stronger core barriers and customer stickiness. The firm continues to hold a positive outlook on the company's development prospects.
Power Equipment & AIDC: AIDC Industrial Chain Expected to Maintain High Prosperity
Global AIDC construction is scaling up, and multiple segments of the industrial chain are expected to maintain high prosperity. ① In the power shortage direction, the firm continues to favor core manufacturer Siyuan Electric, which is positioned in overseas high-voltage transformer and high-voltage switch equipment supply; as well as the gas turbine industrial chain where orders are accelerating, with core beneficiary targets including Jereh Group and Impro Precision. ② In the power source direction, the firm continues to favor domestic enterprises with clear technological advantages that are expected to achieve share breakthroughs, with beneficiary targets including Megmeet, Oulutong, Kstar, and Sinexcel. ③ The firm favors the "shovel seller" segment of the AI computing power industrial chain. AI computing power iteration drives explosive demand for PSU/HVDC/SST testing, and AI server testing power supplies are expected to enter a volume ramp-up window. Enterprises that have completed head customer introduction and validation will benefit first. Beneficiary targets: Action Electronics and Kewell.
New Energy Vehicles: October Domestic Lithium Battery Production Scheduling Grows 3.9% Month-on-Month
The firm believes that under the combined effects of robust energy storage demand, growth in commercial vehicle production and sales, and increased battery capacity per vehicle, lithium battery demand maintains a monthly growth trend. In the short term, the industrial chain enters its traditional peak season in October, and demand is expected to reach new heights; in the medium to long term, domestic power and storage battery demand is expected to maintain steady growth. The lithium battery sector has undergone sufficient correction, and market concerns about the magnitude of demand growth in the second half of the year and next year have gradually been reflected in stock prices. As market expectations recover subsequently, the top pick is lithium battery leader CATL, which has a solid moat and advantageous positioning across the upstream and downstream industrial chain (according to company announcements, as of September 24, the company had cumulatively repurchased 10.248 million shares, with a total repurchase amount of approximately 3.10 billion yuan); secondly, segments with relatively tight supply-demand dynamics such as copper foil and separators have stronger support for price increases. In addition, sodium batteries have prospects for large-scale application, with aluminum foil being the core volume growth segment, and combined with rising processing fees and high-end product volume ramp-up, profitability is expected to strengthen; CNT conductive agents are achieving scale growth driven by improved performance requirements.
Risk Warnings
New energy vehicle industry development falling short of expectations; new energy installation falling short of expectations; risk of significant product price declines; power grid construction falling short of expectations; tender and award conditions falling short of expectations.