For “leaders” such as Jin Jing Xinneng, who had already made a big splash before the industry was about to enter an explosion period, its future development trends are worth watching closely in the market.
On February 28, Hong Kong's Financial Secretary, Chan Mao-po, announced the latest “Budget”. Among them, favorable policies on the property market, stock market, RMB, and various industries, mainly new energy sources, have become the focus of attention.
In the Budget, Chen Maobo proposed a number of key measures for the development of the new energy industry.
For example, the Government is actively promoting the testing of various new energy means of public transportation, including new energy buses, and promoting the industry to test various types of new energy commercial means of transportation, including electric vans and electric tour buses, through the New Energy Transportation Fund.
Another key measure is that the first registration tax relief arrangement for electric vehicles, which is due to expire at the end of next month, will be extended for two years. For electric commercial vehicles, electric motorcycles, electric motor tricycles, and electric vehicles with a vehicle price of less than HK$500,000 before tax, the first registration tax relief will be provided within the next two years to encourage wider use of electric vehicles.
This also means that with the smooth implementation of a series of favorable policies, the imagination space of Hong Kong's new energy circuit has been further enhanced, and it may usher in new opportunities for development.
Currently, as the most intuitive industry in this industry chain and the industry receiving the most attention from the market, new energy vehicles have been fully exploited by the market. However, this does not mean that the entire industry chain has lost its investment value. On the contrary, in some segments of the industrial chain, there may still be huge investment opportunities, especially the battery recycling industry, which is in the post-market service chain.
Generally speaking, the service life of a new energy vehicle power battery is 5-8 years. As a result, the explosion of this industry is clearly lagging behind compared to new energy vehicles.
Along with the continuous increase in NEV ownership, demand for power cell cycles continues to grow over the long term. The compound growth rate is expected to reach at least 18.2% in the next 4 years, which provides huge market space and development opportunities for related companies.
Furthermore, there is another recent piece of news that has once again raised the market's room for imagination about the future of the battery recycling market.
On February 23, at the fourth meeting of the Central Committee on Finance and Economics, it was emphasized that a new round of large-scale equipment upgrades and consumer goods trade-in should be promoted to effectively reduce logistics costs for the whole society. Implementing large-scale equipment upgrades and trade-in consumer goods. Under policy guidance, encouraging new energy vehicles to go to the countryside is also conducive to promoting the long-term development of the battery recycling industry linked to large-scale recycling.
Among them, Jinjing Xinneng (1783.HK), which is one of the companies with the fastest layout in the overseas cell recycling industry and is also known as the number one share in overseas cell recycling, may become a potential beneficiary group of a series of major policies with its strong resource integration capabilities and far-reaching layout in this market.
On the one hand, the Hong Kong government plans to launch a 10 billion yuan new industrial acceleration plan within this year, which includes providing funding for new energy technology companies. Jinjing Xinneng falls within the category of such enterprises. In January of this year, the company reached a cooperative relationship with Midea Real Estate to provide the promotion and sale of MiC integrated modular buildings, interior module products and related supporting products in designated regions to Zhuhai Ruizhu, a wholly-owned subsidiary of Midea Real Estate.
On the other hand, the “Roadmap for the popularization of electric vehicles in Hong Kong” announced in 2021 clearly required that efforts be made to enact legislation to implement producer responsibility plans for decommissioned electric vehicle batteries in the next few years and promote green scientific research on secondary battery applications. And this is exactly what Jin Jing Xinneng has been doing all this time. Since Jinjing Xinneng accelerated its entry into Hong Kong's power battery recycling market in 2022, its commercial footprint has been rapidly expanding. After obtaining a full set of licenses for the disposal, transportation and export of Hong Kong's first power battery in 2022, we cooperated with industry leaders to establish a global service system for battery recycling and recycling.
Not long ago, the company announced that it will join hands with Hefei Guoxuan, a wholly-owned subsidiary of Guoxuan Hi-Tech, to lay out overseas power battery markets, which can help Jinjing Xinneng quickly establish channels overseas, thus promoting the rapid expansion of its overseas markets.
After the news was released, the intraday price rose by more than 7% at one point. It is worth mentioning that since the beginning of the Year of the Dragon, the company's cumulative increase has been close to 50%.
With the promotion of national policies on the NEV industry chain and the promotion of equipment upgrades, as well as various support measures for the NEV industry in the Hong Kong budget, the power battery industry may usher in a new development cycle. For “leaders” such as Jin Jing Xinneng, which have already made great strides before the industry is about to enter an explosion period, its future development trends are worth watching from the market.