The latest views on the lithium battery sector

Mondo Finance Updated on 2024-01-28

First, market dynamics.

At present, the whole market is waiting for the bottoming of lithium carbonate and the convening of the business conference of car companies and battery companies at the end of the year. At that time, a new round of bargaining is expected to affect the market, and the profit expectations of all segments of our lithium battery have been exhausted. At the same time, the traditional off-season of 24Q1 is not dull, mainly due to two aspects: one is due to the lack of inventory and the impact of subsidies in previous years;The second is the intensive release of new models, which will start to ramp up production capacity in 23Q4 to bring increments to the market.

2. Globalization and valuation elasticity.

Looking ahead, we still firmly believe that the "globalization of lithium batteries" is a real big opportunity, which is not only a reflection of performance elasticity, but also the potential of valuation elasticity. Based on this, we put forward the following views and optimistic directions:

Profitability has bottomed out, and there are links with product advantages and cost advantages: batteries (CATL), structural parts (Kodali), and electrolytes (Tianci materials). These companies have leading technology and scale advantages in their respective fields and are expected to dominate the industry recovery.

New technology: high-voltage fast charging. This is a direction driven by the trinity of 4C, 5C (battery material V (vehicle architecture) and liquid-cooled high-power (charging pile). Under this trend, some of the key target companies include: Zhongrong, Wemyss, Boke, Farah and Hongfa in the field of 800V partsTiannai, Xinde, Yuanli, Guanyu and Ningde in the field of batteries and materials;As well as Yonggui, Lihexing, Xinhongye and Invic in the field of charging piles. These companies are key players in this emerging trend and have significant growth potential.

3. Risk Warning.

Of course, there are risks associated with any investment. Although we believe that the above companies have relative advantages and growth potential in their respective fields, there are always risks associated with investing. Market fluctuations, changes in the economic environment, policy adjustments, etc., may affect the company's performance. Therefore, investors should fully understand and evaluate various risk factors when making investment decisions.

In short, after the recent adjustment of the lithium battery sector, we see signs of industry recovery and the development potential of new technologies. In the process, a number of high-quality companies and investment opportunities have emerged. However, investors should still carefully assess the risks and make decisions based on their own investment objectives and risk tolerance.

Note: The data and opinions in this article are provided by the new team of Tianfeng Power and are for reference only.

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