According to the Zhitong Finance APP, China Galaxy Securities released a research report stating that the excess returns in the new energy sector will be brief in the first half of 2025, but the wind power industry chain's volume and profit will rise together in the second half, along with the resonance of domestic and overseas power grids and the explosive demand for AIDC, which will become the core driving force. The bank suggests focusing on three major directions: 1) Accelerating industrialization of AIDC, BC, and new copper paste technologies; 2) Benefiting from global dividends through overseas expansion; 3) The turning point of the supply-demand improvement cycle is approaching.
<h2>The main points of China Galaxy Securities are as follows:</h2>
Review of 2025H1
Demand for solar storage has slowed, and the oversupply situation remains, with resonance in domestic and overseas wind power grids and the rise of AIDC. As of June 18, the CSI 300 Index was -1.52%; the ChiNext Index was -4.06%; the New Energy Index was -3.31%, with excess returns only appearing briefly, mainly driven by core stocks in the energy storage sector.
Outlook for 2025H2
Document No. 136 accelerates the comprehensive market entry of new energy, putting short-term pressure on solar storage, but the trends of global energy security independence and green electrification are clear. The demand for emerging markets in solar storage remains a highlight, with wind power construction accelerating in 2025H2 and strong demand for AIDC construction. Short-term disturbances do not change the industry trend.
Wind power industry chain's volume and profit rise together, overseas expansion boosts profit recovery
European wind power continues to advance, with offshore wind installations starting to ramp up in 2026. For overseas complete machines, the focus is on emerging markets, while components look to Europe. Domestic onshore wind prices are returning to rationality, with the lowest bid prices potentially becoming history. Main engine manufacturers are expected to continue profit recovery in 2025, and large megawatt components may see slight price increases. In 2025, the industry chain's volume and profit will rise together, with greater elasticity in components.
Resonance of domestic and overseas power grid demand, AI leads the wave
From January to April 2025, national power grid investment reached 140.8 billion yuan, a year-on-year increase of 14.6%. At the same time, the overseas expansion of distribution and utilization of electricity boosts growth potential, with transformers exporting a total of 17.83 billion yuan from January to April, a year-on-year increase of 38.2%. Economic recovery and rapid development of AI, combined with the demand for new energy grid connection and power grid upgrades, lead the bank to believe that power grid investment remains highly prosperous, with a focus on ultra-high voltage and inter-regional transmission of the main grid. The AIDC industry chain is highly prosperous, and the bank continues to be optimistic about supply and distribution, as well as liquid cooling transformation.
Era of energy storage parity, global multi-point blossoming
Document No. 136 no longer mandates energy storage, putting short-term pressure on energy storage. In the long term, the energy storage industry is shifting from being driven by strong policy support to being driven by market profitability, with optimism about the potential of domestic independent storage and industrial and commercial storage. Overseas, there is optimism about the rapid growth of large-scale storage in Europe and the United States, as well as the potential for household storage in emerging markets.
Steady global growth in photovoltaics, focus on BC and new copper paste technologies
The comprehensive market entry of new energy puts short-term pressure on photovoltaic demand, with continued downward pressure on industry chain prices, awaiting supply-side reform. Under optimistic expectations, domestic photovoltaic installations are expected to rebound in 2026H1. Emerging markets are developing rapidly, and global photovoltaic installations are growing steadily. There is optimism about the upward iteration of BC and new copper paste technologies.
Investment recommendations
<ol>
<li>Accelerating industrialization of AIDC, BC, and new copper paste technologies; recommended stocks include Megmeet, Jinpan Smart Technology, Igor, COOLTECH POWER, Chint Electric, LXDQ, LONGi Green Energy, Aiko Solar, JinkoSolar, JA Solar, and Juhua Materials. 2) Enjoy global dividends through overseas expansion; recommended stocks include Daikin Heavy Industries, Dongfang Cable, Mingyang Smart Energy, Deyang Co., Ltd., Sungrow Power Supply, Siyuan Electric, Huaming Equipment, and SANXING</li>
<li>The turning point of the supply and demand improvement cycle is approaching. It is recommended to pay attention to Goldwind Technology, Sany Renewable Energy, Jinlei Co., Ltd., GCL-Poly Energy, GoodWe, Shenghong Technology, and CITIC Bo</li>
</ol>

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300153

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002270

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China Galaxy Securities released a research report indicating that the electric new sector will face structural differentiation in the first half of 2025, suggesting attention to three major directions: 1) Industrialization of new technologies in AIDC, BC, and copper slurry; 2) Targets benefiting from global dividends; 3) The turning point of the supply-demand improvement cycle is approaching. It is expected that in the second half of the year, the wind power industry chain will achieve simultaneous growth in volume and profit, with continued high prosperity in grid investment and an explosion in AIDC demand

Zhitong

SANXING

LXDQ

COOLTECH POWER

Jinpan Smart Technology

HUAMING

Sany Renewable Energy

JA SOLAR

GOODWE

Sinexcel Electric

GOLDWIND

Aiko Solar

Megmeet

SZSE New Index

Deye

MYSE

Sungrow Power Supply

JINLEI

EAGLERISE (CHINA)

Jinkosolar

Jinko Solar

Arctech

Chint Electrics

SIEYUAN

China Galaxy Securities: In the first half of the year, the electric new sector showed structural differentiation, focusing on new technologies and non-U.S. exports