Highlights of Securities Firms' Morning Meeting | The new upswing cycle of lithium batteries kicks off, and energy storage is expected to become the core "driver"

The market fluctuated and rose yesterday, with a total turnover of 1.81 trillion yuan in Shanghai and Shenzhen, an increase of 844 billion yuan from the previous trading day. In terms of sectors, the gaming, AI applications, CPO, and precious metals sectors saw the biggest gains, while the military equipment and aquaculture sectors saw the biggest declines. By the end of yesterday's trading, the Shanghai Composite Index rose by 0.87%, the Shenzhen Component Index rose by 1.53%, and the ChiNext Index rose by 1.77%. At today's morning meeting of securities firms, CICC pointed out that a new upturn cycle in lithium batteries has started, and energy storage is expected to become a core "driver"; Huatai released an outlook for the aerospace and defense industry in 2026: a new structure under the new equipment construction cycle; Galaxy Securities released a strategy for the building materials industry in 2026: reshaping the traditional "anti-inner drain" pattern, driving growth through emerging high prosperity. CICC: New upturn cycle in lithium batteries starts, energy storage expected to become a core "driver" CICC believes that since 2025, with the gradual stabilization of prices in the industrial chain and improvement in supply and demand structure, the trend of bottom reversal in lithium batteries has become apparent. Looking ahead to 2026, it is optimistic about the start of a new upturn cycle in lithium batteries, with energy storage expected to become a core "driver." At the same time, a new cycle of lithium battery technology centered on solid-state batteries is accelerating towards industrialization. Investment strategy: 1. Mainline one: Optimistic about energy storage demand exceeding expectations, driving the trend of sector reversal. Key recommendations: lithium battery materials (6F, VC, lithium iron phosphate cathode), batteries, and general parts; 2. Mainline two: Optimistic about new technologies as an investment direction for the high slope of the lithium battery sector, with industrialization expected to continue to break through in 2026, focusing on solid-state batteries, sodium batteries, and their industrial chain; 3. Mainline three: Optimistic about additional policy measures, as charging pile construction resumes, bringing value reassessment due to the establishment of new scenes or industry trends. Huatai Aerospace and Defense Industry 2026 Outlook: A new structure under the new equipment construction cycle Huatai released a research report on the outlook for the aerospace and defense sector in 2026, stating that during the "14th Five-Year Plan" period, the defense industry has achieved a new level of scale; looking ahead to the "15th Five-Year Plan" period, the emphasis may shift from the enhancement of "quantity" to the improvement of "quality." It is expected that new fourth-generation equipment will become one of the key directions for the development of weapons and equipment in the "15th Five-Year Plan" period. The new domain and new quality operational forces are a new benchmark for military development, and are expected to achieve scalable, operational, and systematic development in the "15th Five-Year Plan" period. It is recommended to focus on directions such as drone offensive and defensive capabilities, ground unmanned equipment, underwater offensive and defensive capabilities, low-cost ammunition/missiles, military AI, new generation military aircraft and missile industrial chains, and new domain and new quality directions. The military trade market and the application of military technology in strategic emerging industries bring broad market opportunities, and it is recommended to focus on directions such as commercial aerospace, low-altitude economy, deep-sea technology, nuclear energy utilization, domestic large aircraft, as well as military trade markets and the application of military-civilian technology. Galaxy Securities Building Materials Industry 2026 Strategy: Reconfiguring the traditional "anti-inner drain" pattern, driving growth through emerging high prosperity Galaxy Securities released a strategic report on the building materials industry in 2026, stating that in 2025, the building materials index and fundamentals showed signs of recovery, with differentiated performances in various sub-sectors. Looking ahead to 2026, traditional industries reducing capacity while emerging industries thriving, the building materials industry presents differentiated opportunities. With factors such as intensified policy regulation, continued high prosperity in emerging tracks, the structural investment opportunities in the building materials industry are further highlighted: 1. The policy of "anti-inner-drain" continues to reshape the market order of traditional building materials such as cement and glass, with expectations of a positive supply-demand structure leading to gradual profit recovery in the industry; 2. New energy, electronics, computational power, and other emerging industries continue to grow, with broad prospects for high-performance glass fiber, leading companies with technological barriers and production capacity are set to benefit from growth dividends in the track; 3. In the era of existing real estate combined with the advancement of new urbanization, the release of demand for renovated existing housing, urban renewal, and other factors, leading consumer building materials companies with channel layout, brand, and product quality advantages are expected to benefit. This article is reproduced from "Financial Union", edited by GMTEight: Liu Jiayin.