On September 4th, the Ministry of Industry and Information Technology and the State Administration for Market Regulation issued the "Action Plan for Stable Growth of the Electronic Information Manufacturing Industry from 2025 to 2026."

The "Plan" proposes that from 2025 to 2026, the average growth rate of the added value of the manufacturing industry of computers, communications, and other electronic devices above designated size will be around 7%. With the addition of related fields such as lithium batteries, photovoltaics, and component manufacturing, the annual revenue growth rate of the electronic information manufacturing industry is expected to exceed 5%.

According to statistics and interviews with relevant companies by reporters, the operating conditions of A-share lithium battery equipment companies in the first half of the year have begun to reflect "new momentum." Major lithium battery equipment companies have shown signs of order recovery.

According to Zhitong Finance APP, as of January, leading companies such as LEAD INTELLIGENT (300450.SZ), Lyric Robot (688499.SH), Yifei Laser (688646.SH), Yinghe Technology (300457.SZ), and Yuchen Intelligent (688638.SH) have frequently released positive news, with order types covering key processes in lithium battery production such as coating, roller splitting, cutting and stacking, assembly, formation and capacity, and complete line integration. The customer base includes top lithium battery manufacturers in Europe, globally renowned automotive brands, leading domestic battery companies, and giants in emerging industries such as energy storage and AI computing power.

Dongxing Securities research report points out that orders from CATL are expected to return to the scale of 2020-2021 in 2025.

In the domestic market, the demand for production line transformation and upgrades is being released, with leading battery companies such as CATL, BYD, and EVE Energy actively expanding production. The engineering verification of new technologies such as large cylindrical and solid-state batteries is further deepening, driving the update and replacement of equipment.

In the overseas market, energy transition policies and the explosion of the energy storage market are driving the recovery of demand for power batteries and a surge in energy storage installation demand.

Overseas battery manufacturers are restarting expansion, with the growth rate of demand for lithium battery equipment exceeding that of the domestic market. The peak of overseas project bidding is expected in the second half of 2024, leading to a batch delivery phase of orders in 2025.

New entrants and complete vehicle manufacturers are accelerating their layout in the battery industry, which also drives the demand for complete line equipment procurement.

Non-standard customization and higher requirements for energy storage cells will effectively enhance the value of equipment. Looking ahead to 2025, the lithium battery equipment industry is expected to emerge from the trough and return to an upward trajectory.

Related industries of lithium battery equipment in Hong Kong stocks:

CATL (03750), BYD (01211), Zhongchuang Xinhang (03931), Ruipu Lanjun (00666), etc