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. Progress in industrialization of solid-state batteries is significant, with major companies announcing successful offline production and subsequent vehicle installation guidance, attracting considerable attention. The current sector is 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 companies to realize orders and release performance is opening, and the industry chain’s volume and prices are expected to rise together. We remain 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 has sparked attention to domestic robots, showcasing excellent motion control and operational capabilities. 2026 is expected to become a major year for humanoid applications. Meanwhile, domestic robot companies like Yushu continue to advance IPOs. Their core products have high value and are close to end customers, with a prominent position in the industry chain and strong branding. These manufacturers are likely to see valuation re-ratings, and investors should pay attention to related supply chains. Overseas, Tesla Optimus 3 will start production this summer, following an S-curve ramp-up, and is expected to reach high output levels next year. Additionally, Optimus versions are continuously updated, which may further diversify product applications and target the consumer market.

AIDC Power Generation Equipment: Power shortages remain the main theme for 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. Domestic sales were 15,478 units, down 9.19%; exports reached 20,456 units, up 38.8%. Domestic sales declined slightly year-over-year, but exports performed strongly. As a major revenue contributor, we expect OEMs’ Q1 results to show significant growth. Overall, we forecast domestic market growth of over 10% in 2026 and exports exceeding 15%, with sustained internal and external demand driving upward momentum.

Semiconductor Equipment: The SEMICON exhibition is imminent, and new product launches are expected to catalyze the sector. Regarding downstream capacity expansion, capital expenditures at fab plants are 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. The localization of components, especially module components, is expected to accelerate. The overall fundamentals of the sector are positive, and this cycle should place greater emphasis on “de-化” (de-化, possibly meaning de-化 or de-化 process).

Lithium Battery Equipment: Automakers have clarified full solid-state vehicle installation guidelines, awaiting equipment tendering as a catalyst. Industrialization progress in solid-state batteries is remarkable, 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 orders and performance release is opening, and the industry chain’s volume and prices are expected to rise together. We remain optimistic about the allocation 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)