CITIC Securities: High demand for energy storage, optimistic about the configuration value of the lithium battery sector.

According to a research report from CITIC Securities, looking at the operating results of the battery and energy management industry chain in the first half of 2025 and the second quarter, driven by the growth in both domestic and international new energy vehicle sales and the resonance of global energy storage demand, the performance of the output end of the industry chain is relatively impressive, with most links seeing positive year-on-year growth in revenue in the second quarter. Industry capital expenditures have basically bottomed out, with the year-on-year growth rate of "fixed assets + construction in progress" seeing a slight rebound in the second quarter, and some supply-constrained links have begun to increase production capacity. In terms of profitability, overall profits in the battery and negative electrode links have performed well month-on-month, and profits in the materials link have bottomed out. At the same time, buoyed by the downstream demand for high-end products due to iteration of battery technology, unit profits are expected to enter an upward trend. Considering the significant global comparative advantages of the Chinese lithium battery industry chain and the gradually improving overseas layout, leading companies are expected to further expand their market share and profitability through technological innovation and international expansion. We continue to have a positive outlook on the industry chain segments of leading companies that have further expanded their competitive advantages in technology, cost, and profitability after undergoing cyclical verification.