Weekly Report on the New Energy and New Materials Industry: The "Work Plan for Strengthening Air Pollution Prevention in the Energy Sector" Has Been Released, Positively Boosting the New Energy Sector.

　　Performance of the New Energy and New Materials Index for the Week: Last week, the Shanghai Composite Index rose by 0.76%; the SME Board Index rose by 0.07%; and the ChiNext Index fell by 2.55%. During this period, the New Energy and New Materials Select Index we compiled rose overall by 0.34%, underperforming the Shanghai Composite Index by 0.43 percentage points, outperforming the SME Board Index by 0.26 percentage points, and outperforming the ChiNext Index by 2.89 percentage points. Overall, the new energy and new materials sector continued to follow broader market trends, performing slightly stronger than the SME Board.

　　Photovoltaics and PV Materials: Last week, the photovoltaic sector saw a slight increase. In the short term, we should continue to pay attention to systemic risks in the market. Currently, the fundamental outlook for the PV industry remains positive, and the "Work Plan for Strengthening Air Pollution Prevention in the Energy Sector," issued by the National Development and Reform Commission, once again emphasizes the vigorous development of distributed PV. We believe that after the adjustment phase in small- and mid-cap stocks has run its course, it remains an opportune time to re-enter the PV stock market, with Zhongtian Technology and Oriental Rise being key targets.

　　Batteries and Battery Materials: Last week, prices for battery-grade lithium carbonate, lithium cobalt oxide, and ternary materials all remained stable. Prices for lead ingots, processing fees for electric vehicle battery plates, and processing fees for automotive starter battery plates also stayed steady. Overall, battery stocks continued to adjust along with broader market trends last week. In the short term, as the industry currently lacks truly robust catalysts, coupled with a generally bearish sentiment in the overall stock market, we continue to recommend that investors remain cautious and watchful regarding battery stocks.

　　Wind Power and Wind Power Materials: Last week, wind power stocks continued to adjust along with the broader market, and their overall performance remained relatively weak. We continue to hold our previous view that, although from both a fundamental and policy perspective, the industry’s overall trend remains positive with little significant change, the sector currently lacks strong short-term catalysts. Moreover, considering the impact of the IPO reopening on growth stocks, we still recommend taking a wait-and-see approach toward this sector in the near term.

　　Nuclear Power and Nuclear Power Materials: The nuclear power sector saw a slight increase last week. In the short term, attention should be paid to systemic risks in the market. The Chinese government continues to strengthen its support for nuclear power. The "Work Plan for Strengthening Air Pollution Prevention in the Energy Sector," issued by the National Development and Reform Commission, once again emphasizes the need to promote nuclear power construction in a safe and efficient manner. As a result, ongoing projects are expected to accelerate, and new nuclear power projects are likely to be launched one after another. Consequently, the volume of future tenders for nuclear power equipment and materials is expected to increase significantly. We recommend paying close attention to small-sized companies in the nuclear power materials sector that have new orders, innovative products, and high earnings flexibility—such as Jiuli Special Materials, Jiangsu Shentong, and CNNC Technology.

　　Other New Materials: Last week, the overall performance of the Other New Materials index outperformed the broader market. The primary reason was the relatively strong performance of companies in the metal-based new materials sector within the index. In the short term, stocks related to the defense industry have seen a surge in popularity; therefore, we continue to recommend paying close attention to Gangyan GaoNa, the leading player in high-temperature alloys.

　　Risk: systemic risk of the market; performance risk of related companies.