Equity Research: New Energy & Power Equipment Weekly

Date: February 2026
Sector: Renewable Energy, Power Grid, Lithium Batteries, Hydrogen, AIDC Infrastructure
Analysts: Yao Yao (S1130512080001), Zhang Jiawen (S1130523090006)
Contributors: Fan Xiaopeng, Peng Zhiqiang, Lu Wenjie

Executive Summary

This week’s analysis of the New Energy and Power Equipment sector highlights a pivotal shift in investment themes, characterized by the maturation of "Space Photovoltaics" as a core annual主线 (main line), significant structural improvements in the wind power sector driven by European expansion, and robust capital expenditure guidance from global Cloud Service Providers (CSPs) bolstering the AIDC cooling and power supply chain.

Key Strategic Shifts:
1. Space Photovoltaics (PV): Despite short-term stock price volatility driven by pre-holiday liquidity flows, the fundamental industrial progress remains robust. Key developments include Junda Shares’ acquisition of a satellite company to build a space tech ecosystem and Starcloud’s filing for an 88,000-satellite constellation. We reiterate our Overweight stance on space/Musk-related PV as the defining theme of 2026. The current market correction, driven by sentiment rather than fundamentals, presents a strategic entry point. Focus is shifting towards auxiliary material suppliers with overseas capacity and North American client validation.
2. PV Industry Consolidation: A landmark RMB 1.65 billion patent licensing agreement between Aiko Solar and TCL Zhonghuan (Maxeon) signals a decisive move against "involution" (destructive competition). This establishes intellectual property (IP) protection as a core competitive barrier, fostering a healthier long-term industry ecosystem.
3. Wind Power: The sector continues its upward trajectory, supported by strong overseas demand. Dajin Heavy Industry’s signing of a production base in Gijon, Spain, and the initiation of public consultations for Spain’s first offshore wind auction underscore the accelerating European出海 (export/expansion) trend. We maintain a Buy rating on整机 (OEMs) and the European supply chain, citing improved pricing power and earnings visibility for 2026-2027.
4. AIDC Infrastructure: Q4 2025 earnings from major CSPs (Alphabet, Amazon) revealed significantly elevated 2026 CapEx guidance ($175B-$185B for Google; $200B for Amazon). This confirms the secular growth trend in AI infrastructure, directly benefiting domestic leaders in liquid cooling and power supply solutions.
5. Lithium & Solid-State Batteries: Tesla’s announcement of scaled dry electrode production marks a technological breakthrough with implications for both liquid and solid-state batteries. The upcoming 2026 China All-Solid-State Battery Industry-Academia-Research Collaborative Innovation Platform Annual Conference (Feb 7-8) will be a key catalyst for sector sentiment.
6. Hydrogen: Policy momentum is building, particularly in green methanol and fuel cell vehicles. Bloom Energy’s strong Q4 performance validates the commercial viability of solid oxide fuel cells (SOFC) in data centers, reinforcing the investment case for hydrogen-based energy solutions.

Investment Implication: We advise investors to look beyond short-term noise and focus on structural winners: companies with verified overseas supply chain integration (Wind/PV auxiliaries), technological moats in next-gen battery tech (Solid-state/Dry electrode), and beneficiaries of the AI-driven power/cooling boom.

Key Takeaways

1. Photovoltaics & Energy Storage: From "Involution" to "Innovation & IP Protection"

1.1 Space Photovoltaics: The New Growth Engine

The narrative around space photovoltaics has transitioned from conceptual speculation to tangible industrial execution. Two major events this week underscore this acceleration:

• Junda Shares’ Strategic Acquisition: Junda Shares has acquired a 60% stake in Shanghai Fuyao Xinghe, whose subsidiary, Xuntian Qianhe, is a leading commercial satellite manufacturer. Xuntian Qianhe’s team originates from the China Aerospace Science and Technology Corporation (CASC) and has successfully launched seven commercial satellites, with an annual production capacity of 50 units. This move allows Junda to integrate vertically into the space energy ecosystem, leveraging its existing PV expertise for space applications. Given Junda’s recent HKD 400 million fundraising for space PV R&D, this acquisition solidifies its position as a pioneer in the sector.
• Starcloud’s 88,000-Satellite Constellation: Following SpaceX’s ambitious orbital data center plans, Starcloud has filed with the FCC for an 88,000-satellite constellation operating in the 600-850km orbit. These satellites are designed for distributed AI training and cloud computing, utilizing space-based solar power for continuous energy supply. This development validates the critical role of high-efficiency, lightweight PV modules in space infrastructure.

Investment Logic: The space PV sector is in the early "0 to 1" phase. As the industry matures, the demand for specialized PV components (high radiation resistance, lightweight) will surge. We recommend focusing on:
* Equipment Manufacturers: Maiwei Shares, Autowell, Jingsheng Electromechanical, Liancheng Numerical Control, Shuangliang Eco-Energy, Gaoce Shares, Jiejiawei Chuang, Laplace, Yujing Shares.
* Auxiliary Materials: CPI films, UTG glass (for space); junction boxes, encapsulants, frames, glass, and ribbons (for ground/space overlap). Key names: Junda Shares, Foster, Zerun New Energy, Yongzhen Shares, Amatech, Lens Technology, Flat Glass, Xinyi Solar, Yubang New Material, Xinbo Shares, Woge Optoelectronics, Ruihuatai, Lushan New Material, Kaisheng Technology.
* Cell/Module Makers: Junda Shares, Risen Energy, Shanghai Gangwan, Mingyang Smart Energy, JinkoSolar, JA Solar, Trina Solar, Canadian Solar, LONGi Green Energy, Hengdian DMEGC, Boway Alloy.

1.2 Anti-Involution Milestone: Aiko Solar & TCL Zhonghuan Patent Deal

On February 6, Aiko Solar announced a RMB 1.65 billion patent licensing agreement with Maxeon (a subsidiary of TCL Zhonghuan). Key terms include:
* Scope: Aiko receives rights to all BC (Back Contact) battery and module patents owned solely or jointly by Maxeon globally (excluding the US) for the past and next five years. No cross-licensing is required.
* Legal Resolution: Both parties agree to withdraw or terminate all ongoing legal proceedings related to these patents and refrain from conflicting actions during the five-year term.
* Financials: The license fee is payable in installments over five years, with RMB 250 million due in the first year. Aiko will pass on a RMB 0.02/W patent fee to downstream customers.

Strategic Significance: This agreement represents a paradigm shift in the PV industry. Instead of engaging in costly litigation and price wars, leading firms are using IP rights to establish barriers to entry and stabilize margins. For Aiko, this secures unrestricted sales of its ABC modules in non-US markets, enhancing customer trust and reducing friction costs. Combined with the ramp-up of its Yiwu and Jinan bases, Aiko is well-positioned for global market share expansion. The modest impact on cash flow (due to installment payments) and the ability to pass costs to customers make this a net-positive development for profitability.

1.3 Market Dynamics & Pricing

• Silicon Wafer Prices: Declined by 7% week-on-week (183N type) due to weak terminal demand and inventory buildup. However, monthly prices are down only 4%, indicating some stabilization.
• Cell & Module Prices: Held steady week-on-week, but monthly increases of 18% (cells) and 6% (modules) reflect earlier cost pressures. Profitability remains under pressure for most players, except those serving high-margin overseas markets.
• Auxiliaries: PV glass prices dipped slightly as component makers adopted a "buy-as-needed" strategy. EVA resin prices remained stable at RMB 8,600-9,000/ton due to tight spot availability despite increased production.

Outlook: The industry is bottoming out. The emphasis on IP protection and the emergence of new demand vectors (space, AI-driven energy needs) suggest a gradual improvement in the competitive landscape.

2. Wind Power: European Expansion & Pricing Power Restoration

2.1 Overseas Breakthrough: Dajin Heavy Industry in Spain

Dajin Heavy Industry signed an MoU with Zima Equity Investment to establish an offshore wind foundation manufacturing base at the Port of Gijon, Spain.
* Strategic Value: The facility will serve European markets (Germany, France, UK) and potentially the US. It will produce fixed foundations (monopiles, jackets) and floating structures.
* Policy Tailwinds: Spain’s Ministry for Ecological Transition (MITECO) is allocating EUR 160 million for port infrastructure upgrades and has launched public consultations for its first offshore wind auction. While the 2030 target is 1-3 GW, realistic commissioning dates are expected in the 2032-2035 window due to the prevalence of floating technology requirements.
* Competitive Advantage: Dajin’s Tangshan Caofeidian base (500k tons capacity) recently received bulk production approval from clients. The addition of a European local manufacturing base enhances compliance with the EU’s Net-Zero Industry Act, reducing political risk and improving order win rates.

2.2 OEM Sector: Earnings Visibility & Price Stability

Recent corrections in OEM stocks (Yunda, Goldwind H-shares) were driven by Q4 2025 earnings misses (due to recognition of low-priced 2024 contracts) and EU anti-subsidy probes. However, the outlook remains positive:
* Pricing Trend: Land-based wind turbine bidding prices in January 2026 maintained the high levels seen in H2 2025. With a 1.5-2 year delivery lag, high 2025/2026 prices will translate into superior margins in 2026-2027.
* EU Risk Mitigation: Chinese OEMs’ direct exports to the EU are limited (Goldwind ~12%, mostly to non-EU Eastern Europe). Future expansion will likely involve local manufacturing, which mitigates subsidy risks.
* Recommendation: We continue to recommend OEMs with strong volume and margin growth visibility: Goldwind Science & Technology, Yunda Shares, Mingyang Smart Energy, Sany Heavy Energy, Dongfang Electric.

2.3 Supply Chain Opportunities

• Foundations & Cables: Benefiting from deep-sea projects and overseas expansion. Top picks: Dajin Heavy Industry, Orient Cable, Haili Wind Power.
• Components: Structural opportunities from technical changes and rising overseas market share. Top picks: Jinlei Shares, Riyue Shares, Times New Material.

Forecast: European offshore wind tender volumes are expected to reach 11 GW in 2026 and 16 GW in 2027, representing YoY growth of 190% and 341% respectively. This provides a clear runway for revenue growth for established suppliers.

3. Lithium Batteries: Technological Breakthroughs & Solid-State Momentum

3.1 Tesla’s Dry Electrode Scale-Up

Elon Musk confirmed that Tesla has achieved scaled production of dry electrode technology, describing it as a "major breakthrough."
* Impact: Dry electrode processing reduces cost, energy consumption, and factory complexity while enhancing scalability. It is applicable to both liquid and solid-state batteries.
* Product Roadmap: Tesla is developing four dry-electrode 4680 variants (NC05, NC20, NC30, NC50) for launch in 2026. NC05 will power the Robotaxi; NC20/NC30 will feature silicon-carbon anodes for SUVs and Cybertruck; NC50 targets high-performance roadsters.
* Investment Angle: Focus on equipment suppliers capable of supporting dry electrode manufacturing processes.

3.2 Solid-State Battery Catalysts

The 2026 China All-Solid-State Battery Industry-Academia-Research Collaborative Innovation Platform Annual Conference (Feb 7-8) will gather industry leaders to discuss key materials, cell innovation, process equipment, and AI integration.
* Industry Progress: Guansheng Dongchi’s 4GWh semi-solid LFP battery project in Wenzhou has passed environmental assessment, with production expected by mid-2026.
* Patent Disputes: LG Chem’s patent injunction request against Ronbay’s Korean subsidiary highlights the intensifying IP battles in cathode materials. This underscores the importance of proprietary technology and legal preparedness for Chinese firms expanding globally.

3.3 Market Pricing & Inventory

• Lithium Carbonate: Prices fell sharply (~14.9% WoW) to RMB 137,000/ton (industrial) and RMB 140,000/ton (battery grade) as pre-holiday restocking concluded. Futures hit limit-downs, reflecting short-term oversupply concerns. However, inventory levels are low, and long-term storage demand remains robust.
• Cathode Materials: LFP and Ternary prices declined in tandem with lithium carbonate. LFP power-type averages fell 10.4% to RMB 51,600/ton.
• Anode & Separators: Prices remained stable. Anode utilization rates are high among top tier players, while separators see steady demand from energy storage sectors.
• Electrolyte (LiPF6): Prices weakened to RMB 130,000/ton due to high inventory and weak seasonal demand.

Outlook: The market may be front-running a stronger-than-expected production recovery in March 2026. We advise focusing on battery leaders with valuation repair potential and upstream material suppliers with pricing power (e.g., those benefiting from export tax rebate adjustments).

4. AIDC (AI Data Center) Power & Cooling: CapEx Surge Drives Demand

4.1 CSP Capital Expenditure Guidance

Q4 2025 earnings from major CSPs confirm an aggressive investment cycle in AI infrastructure:
* Alphabet (Google): Q4 Revenue $113.8B (+18% YoY). 2026 CapEx guidance raised to $175-185 billion (from $91.4B in 2025).
* Amazon (AWS): Q4 Revenue $213.4B (+14% YoY). 2026 CapEx guidance raised to $200 billion (from $128.3B in 2025).

4.2 Liquid Cooling Investment Thesis

The surge in CapEx directly benefits the liquid cooling supply chain, driven by three factors:
1. AI Power Density: High-performance chips require efficient thermal management. Liquid cooling is becoming the standard for new AI data centers.
2. Global Market Share Gain: Chinese companies are gaining traction in the global liquid cooling market, offering cost-effective and technologically advanced solutions.
3. Domestic Adoption: Chinese CSPs are also entering the large-scale liquid cooling deployment phase.

Recommendations:
* Component Suppliers: Kechuang Xinyuan (Key Recommendation), Yingweike, Yidong Electronics, Hongfuhan, Lens Technology, Siquan New Material, Feilong Shares, Chuanhuan Technology.
* IDC Solutions Providers: Shenling Environment (Key Recommendation), Chuanrun Shares, Tongfei Shares, Gaolan Shares.
* Equipment Manufacturers: Tsugami Machine Tool China, Chuangshiji, Ningbo Jingda.
* New Technologies: Monitor advancements in micro-channel, two-phase cold plates, and immersion cooling.

5. Hydrogen & Fuel Cells: Policy Tailwinds & Commercial Viability

5.1 Bloom Energy: A Case Study in Profitability

Bloom Energy’s Q4 2025 results demonstrate the viability of solid oxide fuel cells (SOFC) in the AI era:
* Financials: Revenue grew 37% to $2 billion. Adjusted EBITDA reached $271.6 million, with positive operating and free cash flow for the full year.
* Order Book: Backlog surged 140% to $20 billion ($6B product, $14B service).
* Technology Moat: BE’s 800V DC native output and rapid load-following capabilities address critical pain points for AI data centers (efficiency, stability, no battery requirement).
* Implication: BE’s success validates the hydrogen/fuel cell pathway for stationary power. Capacity expansion is now a certainty, not a question.

5.2 Green Methanol & Hydrogen Transport

• Green Methanol Shortage: With 300 methanol-fueled ships scheduled for delivery in the next two years, demand for green methanol will reach 6.8 million tons, far exceeding current supply (<1 million tons). This supply-demand imbalance creates a high-margin window for early movers.
  • Top Picks: Goldwind Science & Technology, Jidian Shares, CIMC Enric, China Tianying, Furan Energy, Jiaze New Energy, Fuqing Environmental.
• Electrolyzer Demand: As green methanol/ammonia projects accelerate construction in H2 2026, upstream electrolyzer manufacturers will see a demand spike.
  • Top Picks: Huadian Kegong, Huaguang Huaneng. Watch: Shuangliang Eco-Energy.
• Fuel Cell Vehicles (FCVs): Multiple provinces are implementing toll exemptions for hydrogen trucks. With the end of the demonstration city cluster policy period in 2025, new subsidies and expansion policies are expected.
  • Top Picks: SinoHytec, Guofu Hydrogen, Re-Shaping Energy, Guohong Hydrogen.

6. Power Grid: UHV Acceleration & Metering Recovery

6.1 State Grid 2026 Procurement Plan

State Grid Corporation of China (SGCC) released its 2026 centralized procurement schedule, featuring 104 batches. Key observations:
* Consistency: The schedule mirrors 2025, with peak activity in June and September.
* Focus Areas: 6 batches each for UHV equipment, UHV preliminary services, and transmission/distribution equipment; 3 batches for smart meters; 4 batches for digitalization.
* Qualification Pre-screening: Introduced for UHV, transmission, and digital projects, raising entry barriers and favoring established leaders.

6.2 Smart Metering: Profitability Repair

SGCC re-tendered failed metering projects from 2025 with new pricing rules:
* Price Caps: Single-phase remote meters capped at RMB 170; three-phase at RMB 435/425.
* Scoring Adjustment: Price scoring parameters were adjusted to reduce extreme low-price bidding, although price remains a key factor.
* Outlook: While competition remains intense, the standardized pricing and volume stability support a gradual repair in margins for metering companies.
* Top Picks: Sanxing Medical, Haixing Power.

6.3 UHV Transmission: "15th Five-Year Plan" Kickoff

• Inner Mongolia: Plans for 12 new UHV lines ("6 AC + 6 DC") to export power from desert bases.
• Qinghai-Guangxi/Guangdong: Accelerated approval for green power transmission channels.
• Private Investment: Inclusion of private capital in projects like "Xinjiang Power to Sichuan" signals faster approval and construction timelines.
• Transformer Shortage: Global transformer lead times exceed 100 weeks, with a 30% supply gap expected in the US in 2025. Chinese exporters with channel advantages are well-positioned.
  • Top Picks (UHV/Transformers): Pinggao Electric, Xuji Electric, China XD Electric, NARI Technology, Siyuan Electric, Huaming Equipment, Shenma Power, Jinbei Electric.
  • Solid State Transformers (SST): Emerging technology for high-density AI loads. Watch: Jinpan Technology, Eaglerise, Sifang Shares, China XD, TBEA, Xinte Electric.

7. Industrial Control & Robotics: AI & Humanoid Robots

• Market Recovery: December 2025 orders showed超预期 (better-than-expected) growth for domestic industrial control leaders, driven by semiconductor and electronics manufacturing upgrades.
• Humanoid Robots: As the industry approaches mass production, domestic control firms are securing positions in motors, drivers, and encoders.
• Top Picks: Inovance Technology, Xinje Electric, Broad-Ocean Motor, Leadshine Technology. Watch: Weichuang Electric, Hongfa Technology, Wolong Electric Drive.

Risks / Headwinds

1. Policy Execution Risk: The renewable energy transition relies heavily on government subsidies and mandates (e.g., hydrogen subsidies, offshore wind auctions). Delays or reductions in policy support could dampen demand.
2. Intense Price Competition: Despite efforts to curb "involution," excess capacity in PV and lithium batteries could lead to prolonged price wars, eroding margins beyond expectations.
3. Geopolitical Friction: Trade barriers (e.g., EU anti-subsidy investigations, US tariffs) pose risks to overseas expansion plans for Chinese wind, PV, and battery companies.
4. Technological Disruption: Rapid advancements in alternative technologies (e.g., solid-state batteries, new PV cell architectures) could render existing capacity obsolete or require significant capex for upgrades.
5. Raw Material Volatility: Fluctuations in lithium, cobalt, nickel, and silver prices can impact downstream profitability and project economics.

Rating / Sector Outlook

Investment View

Core Strategy: Embrace Structural Winners in a Transforming Landscape

The New Energy sector is undergoing a profound transformation from pure capacity expansion to quality-driven, technology-led growth. Investors should pivot from broad beta exposure to targeted alpha generation in specific sub-sectors with clear catalysts.

1. The "Space + AI" Energy Nexus

The convergence of space exploration and AI computing is creating a new demand frontier for energy. Space photovoltaics are no longer a niche concept but a burgeoning industry with visible order books (Starcloud, Junda). Simultaneously, AI data centers are straining traditional power grids, necessitating advanced cooling and distributed power solutions (Bloom Energy, Liquid Cooling).
* Action: Overweight companies with proven capabilities in space-grade PV materials and liquid cooling infrastructure. These sectors offer high growth visibility independent of traditional terrestrial renewable cycles.

2. Wind Power’s Global Arbitrage

Chinese wind power manufacturers have successfully navigated domestic price wars and are now capturing high-margin opportunities in Europe and emerging markets. The establishment of local production facilities (e.g., Dajin in Spain) de-risks geopolitical exposure and aligns with local content requirements.
* Action: Buy leading OEMs and foundation/cable suppliers with strong European footprints. The earnings inflection point is imminent as high-priced 2025/2026 contracts begin to recognize revenue.

3. PV Industry Rationalization

The Aiko-TCL patent deal is a watershed moment. It signals that leading players are prioritizing profitability and IP rights over market share at all costs. This will likely lead to industry consolidation and margin stabilization.
* Action: Favor integrated leaders with strong IP portfolios and differentiated technologies (BC, HJT). Avoid pure-play commoditized manufacturers lacking technological moats.

4. Lithium’s Technological Renaissance

While near-term lithium prices are volatile, the long-term story is being rewritten by solid-state and dry electrode technologies. Tesla’s breakthrough and the upcoming solid-state conference highlight the sector’s innovation pipeline.
* Action: Accumulate positions in battery leaders investing heavily in next-gen tech (CATL, EVE) and specialized equipment/material suppliers involved in solid-state commercialization.

5. Grid Modernization as a Defensive Play

With renewable penetration increasing, grid stability becomes paramount. The "15th Five-Year Plan" emphasizes UHV transmission and digitalization. The global transformer shortage provides a lucrative export window for Chinese manufacturers.
* Action: Hold grid equipment leaders with strong state-owned enterprise (SOE) relationships and export capabilities. Smart metering offers a stable, dividend-yielding defensive component.

Portfolio Construction Advice

• Aggressive Growth: Allocate to Space PV (Junda), Liquid Cooling (Shenling, Kechuang), and Hydrogen (Kewell, Goldwind).
• Core Holdings: Maintain positions in Wind OEMs (Goldwind, Mingyang), Battery Leaders (CATL), and Grid Giants (NARI, Siyuan).
• Value/Recovery: Consider PV Auxiliaries (Foster, Flat Glass) and Smart Meters (Sanxing) for margin repair plays.

Conclusion

The volatility observed in recent weeks, particularly in space-themed stocks, is largely technical and sentiment-driven. The underlying industrial trends—accelerating overseas wind orders, CSP capex explosions, and PV industry rationalization—remain intact and robust. We view current dips as buying opportunities for high-conviction names with clear visibility into 2026-2027 earnings growth. Investors should remain disciplined, focusing on companies with tangible order books, technological leadership, and successful global expansion strategies.

Appendix: Detailed Company Analysis & Financial Context

(Note: The following section provides deeper context on key recommended entities based on the report’s logic.)

A. Photovoltaics: Deep Dive on Key Players

1. Junda Shares (002865.SZ)

• Investment Thesis: Junda is transitioning from a pure PV cell manufacturer to a diversified space-tech energy provider. The acquisition of Xuntian Qianhe provides immediate access to satellite manufacturing capabilities, complementing its R&D in space PV cells.
• Catalyst: Integration of satellite manufacturing with PV R&D could lead to proprietary "satellite-power" packages, positioning Junda as a one-stop-shop for low-earth orbit (LEO) energy solutions.
• Risk: Execution risk in integrating disparate business lines; high R&D burn rate.

2. Aiko Solar (600732.SH)

• Investment Thesis: The RMB 1.65 billion patent deal removes a major overhang on its international expansion. By securing BC patent rights, Aiko can aggressively market its ABC modules in Europe and Asia without fear of litigation. The ability to pass on the RMB 0.02/W fee protects margins.
• Catalyst: Ramp-up of Yiwu and Jinan bases; increased market share in premium residential/commercial segments in Europe.
• Risk: Slower-than-expected adoption of BC technology in price-sensitive markets.

3. Foster (603806.SH) & Flat Glass (6865.HK/601865.SH)

• Investment Thesis: As auxiliary material leaders, these companies benefit from overall PV volume growth and the specific demands of space/high-efficiency modules (e.g., specialized encapsulants, thin glass). Their scale and cost advantages provide a defensive moat.
• Catalyst: Stabilization of raw material prices; increased demand for high-transmittance glass for BC/HJT modules.

B. Wind Power: Deep Dive on Key Players

1. Dajin Heavy Industry (002487.SZ)

• Investment Thesis: Dajin is the premier beneficiary of the European offshore wind boom. Its Gijon plant strategically positions it to serve the Atlantic coast markets. The company’s ability to produce XXXL monopiles and floating foundations aligns perfectly with the industry’s shift to deeper waters.
• Catalyst: Final investment decisions (FIDs) on major European offshore projects; successful commissioning of the Spanish plant.
• Risk: Delays in European permitting; supply chain bottlenecks for steel.

2. Goldwind Science & Technology (002202.SZ/2208.HK)

• Investment Thesis: As the global wind OEM leader, Goldwind is benefiting from the cyclical upturn in turbine prices. Its diversified portfolio (onshore, offshore, services) and strong presence in emerging markets mitigate reliance on any single region.
• Catalyst: Margin expansion from higher-priced orders; growth in service revenue from installed base.
• Risk: Intense competition in domestic onshore market; geopolitical headwinds in Western markets.

3. Orient Cable (603606.SH)

• Investment Thesis: High-voltage submarine cables are a bottleneck in offshore wind development. Orient Cable’s technical leadership and capacity expansion position it to capture a significant share of the growing European and domestic deep-sea market.
• Catalyst: Award of major European cable contracts; completion of new production lines.

C. AIDC & Cooling: Deep Dive on Key Players

1. Shenling Environment (301018.SZ)

• Investment Thesis: Shenling is a leading provider of precision temperature control solutions for data centers. Its comprehensive product line (air cooling, liquid cooling, immersion) allows it to cater to diverse CSP needs. The surge in AI CapEx directly translates to order growth.
• Catalyst: Large-scale liquid cooling deployments by Chinese CSPs; entry into global supply chains of hyperscalers.
• Risk: Margin pressure from raw material costs; intense competition from HVAC giants.

2. Kechuang Xinyuan (300731.SZ)

• Investment Thesis: Specializing in thermal management materials and components, Kechuang is well-positioned to benefit from the widespread adoption of cold plates and liquid cooling loops. Its partnerships with major battery and electronics firms provide a stable revenue base.
• Catalyst: Increased penetration of liquid cooling in AI servers; expansion into automotive thermal management.

D. Lithium & Batteries: Deep Dive on Key Players

1. CATL (300750.SZ)

• Investment Thesis: CATL remains the undisputed global leader in battery technology and manufacturing scale. Its aggressive R&D in solid-state batteries, condensed matter batteries, and dry electrode processes ensures it stays ahead of the technology curve. Strong cash flow allows it to weather price volatility.
• Catalyst: Commercialization of next-gen batteries; market share gains in energy storage.
• Risk: Geopolitical restrictions on Chinese battery tech; raw material price swings.

2. EVE Energy (300014.SZ)

• Investment Thesis: EVE has a balanced portfolio of consumer, power, and storage batteries. Its strong presence in the cylindrical battery segment (4680) aligns with Tesla’s dry electrode breakthrough.
• Catalyst: Scaling of 4680 production; growth in large-format storage batteries.

E. Hydrogen: Deep Dive on Key Players

1. Kewell (688557.SH)

• Investment Thesis: Kewell is a leading supplier of test equipment for fuel cells and hydrogen systems. As the hydrogen industry moves from R&D to commercialization, demand for high-quality testing and validation equipment will rise.
• Catalyst: Expansion of fuel cell vehicle demonstration programs; growth in green hydrogen production facilities.

2. Goldwind Science & Technology (002202.SZ)

• Investment Thesis: Beyond wind, Goldwind is a major player in green hydrogen and methanol production, leveraging its renewable energy assets to produce low-cost green power for electrolysis.
• Catalyst: Commissioning of integrated wind-hydrogen-methanol projects; premium pricing for green methanol.

Market Data & Price Trends Analysis

Photovoltaic Chain Price Movements (Week Ending Feb 4, 2026)

Analysis: The divergence between wafer prices (falling) and cell/module prices (stable/rising monthly) indicates a transfer of pressure upstream. Wafer manufacturers are cutting prices to clear inventory, while cell/module makers are holding prices due to earlier cost increases. This squeeze may force weaker wafer players out of the market, aiding consolidation.

Lithium Battery Chain Price Movements (Week Ending Feb 5, 2026)

Analysis: The sharp decline in lithium carbonate prices is a corrective move after a period of stability. With pre-holiday restocking complete, the market is entering a traditional淡季 (slow season). However, the long-term structural demand from energy storage and EVs remains intact. The price drop may stimulate downstream demand in Q2 2026.

Regulatory & Policy Landscape

China’s "15th Five-Year Plan" (2026-2030) Implications

• Energy Transmission: The plan emphasizes the construction of a robust UHV grid to facilitate the transfer of renewable energy from western bases (Inner Mongolia, Qinghai, Xinjiang) to eastern load centers. The inclusion of private capital in UHV projects is a novel approach to accelerate funding and execution.
• Hydrogen Economy: National policy is shifting towards non-electric decarbonization, with hydrogen, ammonia, and methanol identified as key carriers. Expect supportive policies for green hydrogen production and fuel cell vehicle deployment.
• Digitalization: The integration of AI and digital technologies in the power grid (Smart Grid 2.0) will drive demand for sensors, meters, and control systems.

International Policy Developments

• EU Net-Zero Industry Act: Local content requirements are driving Chinese manufacturers to establish European production facilities (e.g., Dajin in Spain). This trend will continue as a prerequisite for accessing the European market.
• US Inflation Reduction Act (IRA): Continued subsidies for domestic clean energy manufacturing pose a challenge for Chinese exports but also create opportunities for joint ventures or licensing agreements.
• Spain Offshore Wind Auction: The initiation of public consultations marks the start of Spain’s offshore wind journey. Given the country’s deep-water geography, floating wind technology will be crucial, offering opportunities for specialized suppliers.

Final Investment Recommendations Summary

We maintain a constructive outlook on the New Energy and Power Equipment sector, with a preference for companies demonstrating technological leadership, global expansion capabilities, and resilience to price competition.

Top Conviction Buys:
1. Dajin Heavy Industry: Best-in-class exposure to European offshore wind growth.
2. Shenling Environment: Direct beneficiary of AI-driven liquid cooling demand.
3. Goldwind Science & Technology: Balanced play on wind recovery and green hydrogen/methanol.
4. Junda Shares: High-risk, high-reward play on space photovoltaics.
5. CATL: Defensive core holding with technological optionality in solid-state batteries.

Accumulate on Weakness:
* Wind OEMs: Yunda, Mingyang, Sany.
* Grid Equipment: Siyuan Electric, Pinggao, NARI.
* PV Leaders: LONGi, Jinko, Foster.

Monitor Closely:
* Hydrogen Pure Plays: Kewell, SinoHytec (policy-dependent).
* Solid-State Battery Supply Chain: Equipment and material providers participating in the Feb 7-8 conference.

Disclaimer: This report is for institutional investors only. It does not constitute an offer to sell or a solicitation of an offer to buy any securities. Past performance is not indicative of future results. Investors should conduct their own due diligence and consult with financial advisors before making investment decisions.