CITIC Construction Investment: continue to be bullish on the energy storage and lithium battery sectors, pay attention to the long-term application trend of green alcohol

CICC research report stated that in terms of energy storage, the energy storage sector continues to be a key recommendation. Recently, the price discount of electricity in Shandong is obvious, and the willingness of owners to self-supply energy storage is increasing; following Gansu, Ningxia has introduced capacity-based electricity prices, which is helpful for increasing the investment enthusiasm of owners. In terms of lithium batteries, the lithium battery sector has already exceeded market demand expectations for 2025. The current core issue is whether the demand expectations for 2026 will continue to be revised upwards. Further attention should be paid to energy storage bidding and installation data, confidence in the 2026 guidance, the continuation of policies such as the replacement of old vehicles with new ones in 2026, and lithium battery production information, etc. Continuously bullish on lithium batteries and energy storage. In terms of hydrogen energy, the industrial trend of SOFC in North America brought about by the shortage of electricity demand is still being verified and strengthened. Continued optimism about cost reduction and cost advantages brought about by SOFC; the long-term trend of green ethanol applications is the inevitable result of decarbonization in shipping, and IMO regulations are accelerating the progress towards parity pricing and expanding the industry space.