CITIC Securities: Continue to be optimistic about the investment potential of the solid-state battery sector

China Securities Construction Investment Research Report states that in the lithium battery equipment sector, automakers have clarified full solid-state vehicle installation guidelines, awaiting equipment tendering as a catalyst. The industrialization progress in the solid-state battery field is significant, with major companies announcing successful offline production and subsequent vehicle installation guidance for all-solid-state batteries, attracting considerable attention. Currently, the overall sector is in the “hitting zone,” with leading battery manufacturers also initiating GWh-level solid-state battery production equipment tenders, planning to achieve small batch demonstration vehicle installation by 2027 and large-scale mass production by 2030. The window for equipment companies’ order fulfillment and performance release is opening, and the industry chain’s volume and prices are expected to rise together. We continue to be optimistic about the allocation value of the solid-state battery sector.

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Yushu Technology IPO Accepted, AIDC Power Generation Equipment Continues to Benefit from North American Power Shortages

Humanoid Robots: The sector is gradually entering the allocation range, with Yushu IPO and Tesla V3 both poised for launch. Domestically, the Chinese New Year Spring Festival Gala sparked attention for domestic robots, demonstrating excellent motion control and operational capabilities. 2026 is expected to be a major year for humanoid applications. Meanwhile, domestic robot companies like Yushu are continuously advancing their IPOs. Their core products have high value and are close to end customers, with a prominent position in the industry chain and strong brand recognition. These manufacturers are likely to see valuation reassessment, and it is recommended to monitor related supply chains. Overseas, Tesla Optimus 3 will start production this summer, following an S-curve ramp-up, with high production expected next year; meanwhile, Optimus versions are continuously updated, which may further enrich product applications and target the consumer market.

AIDC Power Generation Equipment: Power shortages remain the main theme throughout the year, with a firm outlook on the gas turbine industry chain. Our estimates suggest that global demand for gas turbines will exceed 120GW by 2028, with supply around 90GW, leading to a widening gap. We remain optimistic about the gas turbine industry chain and trends such as ship engine conversions to gas.

Construction Machinery: Excavator exports surged in January-February, with expected strong Q1 performance. In the first two months of 2026, a total of 35,934 excavators were sold, up 13.1% year-over-year. Among them: domestic sales were 15,478 units, down 9.19%; exports were 20,456 units, up 38.8%. Domestic sales declined slightly year-over-year, but exports performed strongly. As a major contributor to performance, OEMs are expected to see high growth in Q1. Overall, we expect the domestic market to grow over 10% in 2026, with exports increasing over 15%, driven by sustained internal and external demand.

Semiconductor Equipment: The SEMICON exhibition is upcoming, and new product launches are expected to catalyze the sector. Regarding downstream capacity expansion, capital expenditure at fab factories is expected to continue rising in 2026, with storage showing the strongest certainty, and advanced logic maintaining robust performance. In terms of localization, downstream companies are accelerating verification and adoption of domestically produced equipment, especially in components and module parts, which may speed up the localization process. The overall fundamentals of the sector are positive, and this cycle should place greater emphasis on “de-commoditization.”

Lithium Battery Equipment: Automakers have clarified full solid-state vehicle installation guidelines, awaiting equipment tendering as a catalyst. The industrialization progress in the solid-state battery field is notable, with major companies announcing successful offline production and subsequent vehicle installation guidance, attracting significant attention. The sector is currently in the “hitting zone,” with leading battery manufacturers initiating GWh-level solid-state battery production equipment tenders, planning to achieve small batch demonstration vehicle installation by 2027 and large-scale mass production by 2030. The window for equipment order fulfillment and performance release is opening, and the industry chain’s volume and prices are expected to rise together. We remain optimistic about the strategic value of the solid-state battery sector.

Risk Warning: Risks include fluctuations in the domestic macroeconomic environment, overseas market volatility, and slower-than-expected downstream capacity expansion.

(Source: First Financial)