China Securities Co., Ltd.: Photovoltaic capacity integration gradually promotes attention to the realization of performance of power equipment.

China Securities Co., Ltd. released a research report stating that in the lithium battery sector, the sensitivity to information about lithium carbonate production halts has decreased. This week, the policy games in the United States are still heavy, and the outlook for demand in the second half of the year is still higher than expected. In terms of power equipment, this week, the sentiment in the AIDC supporting and export sectors has improved. Attention should be paid to the realization of company performance, and it is expected that exports, high-voltage equipment, and off-grid installations will bring positive effects. In terms of solar energy storage, the price of polycrystalline silicon is supported by cost, and the core contradiction of whether profitability can further rise after capacity integration is production control. In wind power, the market is currently significantly underestimating the profit elasticity that improvements in wind turbine prices can bring to wind turbine companies. Focus is on the main engine and offshore wind links. The main points of China Securities Co., Ltd. are as follows: Power equipment: The sentiment in the AIDC supporting and export sectors improved this week. China Securities Co., Ltd. believes that [1] The strong prosperity of the AIDC continues; [2] Focus on the volume of high-voltage equipment, and it is expected that a large number of orders for high-voltage equipment will be released in the second half of the year; [3] The export growth rate of transformers in the first half of the year was over 40%, and it is expected that exports, high-voltage equipment, and off-grid installations will bring positive effects. Lithium battery: The sensitivity to information about the halting of lithium carbonate production has decreased. This week, the policy games in the United States are still heavy. The outlook for demand in the second half of the year is still higher than expected. It is recommended to focus on stocks that show stable performance in Q2 or may have catalysts in Q3. Solar energy storage: With the requirement of not selling below full cost, the price of polycrystalline silicon is supported by costs. The core contradiction of whether profitability can further rise after capacity integration is production control. In terms of energy storage, the demand for energy storage in the United States is expected to recover after the OBBB Act is implemented. The annual demand may exceed expectations, and attention should be paid to individual stocks that may exceed expectations in Q2 performance. Wind power: The wind power sector has recently shown relatively poor performance and is suitable for deployment at low levels and when attention is low. China Securities Co., Ltd. believes that the market is currently significantly underestimating the profit elasticity that improvements in wind turbine prices can bring to wind turbine companies. Focus is on the main engine and offshore wind links. Hydrogen energy: This week, the green ammonia produced by the Vision Zero-Carbon Hydrogen project was completed in Dalian Port, marking the world's first use of 100% green electricity to produce ship ammonia fuel. The domestic production and injection capacity of "green methanol" and "green ammonia" is forming, and industry demand is awaiting volume. Siasun Robot & Automation: The WAIC ending sector has seen some retracement. It is recommended to focus on 1) companies with strong financial strength, comprehensive management capabilities, and overseas factory layouts; 2) solution providers that lead in the implementation progress of automated workstation demos in the second half of the year. Risk Warning: 1) Lower-than-expected production and sales of downstream new energy vehicles; 2) Unexpected rise in raw material prices; 3) Policy support falling short of expectations.