Tracking the concept of Hong Kong stocks | The performance of the lithium battery industry chain has exploded! Institutions are optimistic about the continued improvement of supply and demand patterns (with conceptual stocks attached)

Recently, many companies in the lithium battery industry, such as Tianqi Lithium Corporation and Guangzhou Tinci Materials Technology, have released performance reports, with net profit for the first quarter increasing more than 10 times compared to the same period last year. Driven by the resonance of downstream power and energy storage battery demand, as well as the stabilization and increase in the price of lithium carbonate, the lithium battery sector has seen a shining moment in terms of performance. Institutions predict that the overall demand growth for lithium batteries for the full year will remain optimistic, and the supply-demand pattern of the industry chain is expected to continue to improve, with expectations of simultaneous increases in quantity and price in various links. According to the announcement from Tianqi Lithium Corporation, the company achieved operating income of 5.128 billion yuan in the first quarter of 2026, an increase of 98.44% year-on-year; and the net profit attributable to shareholders of the listed company was 1.876 billion yuan, an increase of 1699.12% year-on-year. The announcement pointed out that the performance change was mainly benefited from multiple favorable factors such as the development of the new energy industry and the growth in downstream demand. The sales prices of the company's main lithium products during the reporting period all increased significantly compared to the same period last year, leading to a substantial increase in operating income and gross profit over the same period last year. In addition, Guangzhou Tinci Materials Technology and YOUNGY Co., Ltd. also saw their net profits increase by 1006% and 1296.26% respectively. The performance changes were all driven by the increase in the unit price and sales volume of lithium-ion battery materials, as well as the increase in sales volume and prices of lithium concentrate. Since starting in June last year, the price of lithium carbonate has begun to rise, with prices increasing by over 100%, reaching around 170,000 yuan per ton in the spot market. The price trend continued to be upward in February this year. On the supply side, the "internal competition" in the lithium battery industry is constantly advancing, and the supply both domestically and internationally is continuing to contract. Domestically, policies and market tightening further suppressed domestic lithium ore supply. The overseas market is also showing a tight situation, such as in the main producer country Zimbabwe, where lithium ore production accounts for over 10% of the global total and is the largest import source domestically. The export ban cycle has led to high uncertainty in the supply. At the same time, demand continues to recover under structural opportunities and energy storage support. Although the growth rate of new energy vehicle sales has slowed down, there are still structural opportunities, with the domestic penetration rate still having room to increase, while the overseas market penetration rate is far below that of the domestic market and is expected to become a core market. On the other hand, the demand for large battery packs is increasing, continuously driving the demand for power batteries. Therefore, power batteries are still maintaining a high growth trend. According to the latest data released by the China Automotive Power Battery Industry Innovation Alliance, from January to March this year, the cumulative sales volume of power and energy storage batteries in China reached 437.1GWh, an increase of 52.9% year-on-year, with the sales volume of energy storage batteries increasing by as much as 111.8% year-on-year; in addition, the production volume of power and energy storage batteries in China during the same period also increased by 49.3% year-on-year. The demand for energy storage batteries is strong and has become an important increment in the growth of the lithium industry. Looking ahead to the second quarter, China Great Wall released a research report stating that the demand for power and energy storage is expected to continue to grow rapidly compared to the previous quarter. The lithium carbonate market price has returned to above 150,000 yuan per ton, and with the strong demand for power and energy storage downstream, the industry chain is expected to enter a price increase cycle. In addition, the price of separators may gradually increase, reaching a key point of supply and demand reversal. Industry insiders generally believe that based on the limited growth in supply and the strong demand downstream, the supply of lithium carbonate may remain in a tight balance throughout the year, with a low probability of large price fluctuations, and enterprises with low costs and high self-sufficiency will continue to lead in the new competitive landscape. Guotai Haitong released a research report stating that the outlook for the demand for lithium batteries and energy storage systems in 2026 is promising, and it is optimistic about the lithium battery and energy storage sectors. The bank believes that with the improvement in demand for energy storage systems and batteries, after the good demand, the prices of lithium battery materials or energy are expected to increase simultaneously. Dongguan Securities believes that in the current context of high oil prices, the economic efficiency of electric vehicles has significantly improved, and consumer demand is expected to continue to improve. The field of energy storage is showing a strong supply and demand situation: domestic policies on new energy storage capacity and electricity price compensation provide strong support, the overseas trend of AI data center construction and the Middle East geopolitical conflict pushing up energy prices further boost global demand for energy storage. The overall demand growth expectation for lithium batteries for the full year remains optimistic, the supply-demand pattern of the industry chain is expected to continue to improve, with expectations of simultaneous increases in quantity and price in various links. Related concept stocks: Tianqi Lithium Corporation (09696): In the first quarter of 2026, the operating income was approximately 5.128 billion yuan, an increase of 98.44% year-on-year; the net profit attributable to shareholders of the listed company was approximately 1.876 billion yuan, an increase of approximately 16.99 times year-on-year. The increase in net profit was mainly driven by the development of the new energy industry and the growth in downstream demand. The average selling prices of the company's main lithium products during the reporting period all increased significantly compared to the same period last year, leading to a substantial increase in operating income and gross profit compared to the same period last year. Ganfeng Lithium Group (01772): The net profit for the first quarter turned positive, ranging from 1.6 billion to 2.1 billion yuan, meeting expectations. The performance was mainly benefited from a sharp increase in average selling prices, with the average price of lithium carbonate during the period being 154,000 yuan per ton, a quarterly increase of 75%. Jiangsu Lopal Tech. Group (02465): The company expects to achieve operating income of 3.3 billion to 3.6 billion yuan in the first quarter, an increase of 107.25% to 126.09% year-on-year; and expects to achieve a net profit attributable to shareholders of the listed company of 200 million to 250 million yuan, turning a loss into a profit year-on-year. Recently, the company signed a "Subscription, Supply, and Advance Payment List" with GL1 and GLR to support the company's increasing demand for raw materials. The main contents of the "List" include the subscription of GL1 shares, the supply of Manna lithium spodumene by GLR, and related advance payment arrangements. CNGR Advanced Material (02579): CNGR Advanced Material released a performance forecast for the first quarter, with a net profit attributable to shareholders of the listed company of 530 million to 590 million yuan, an increase of 72.32% to 91.82% year-on-year. During the period, the total sales volume of nickel-based, cobalt-based, phosphorus-based, and sodium-based battery materials products was nearly 130,000 tons, presenting a good trend of both production and sales, providing strong support for the steady growth of the company's operating profit.