In today's Brokerage morning meeting, Sinolink believes that the core logic of incremental policies is becoming clearer; China Securities Co.,Ltd. noted that the current expectations for Fuel Cell Energy vehicles in the Sector are relatively weak, and there might be an upward inflection point in sales during the peak season in May-June; HTSC suggested that the demand is improving in the first quarter, and the performance recovery of Electrical Utilities New energy industry is expected.
According to the Financial Link on April 25th, the market experienced fluctuations yesterday, with the three major indexes showing mixed results. Several high-position stocks showed rebound trends towards the end of the session. The total transaction volume in the Shanghai and Shenzhen markets was 1.11 trillion, decreasing by 120.7 billion compared to the previous trading day. In terms of sectors, PEEK materials, Electrical Utilities, The Pet Economy, and Banks saw significant gains, while Recent IPOs, Software Development, Huawei Ascend, and Computing faced losses. By the close of yesterday, the Shanghai Composite Index rose by 0.03%, the Shenzhen Component Index fell by 0.58%, and the Chinext Price Index dropped by 0.68%.
In today's Brokerage morning meeting, Sinolink believes that the core logic of incremental policies is becoming clearer; China Securities Co.,Ltd. noted that the current expectations for Fuel Cell Energy vehicles in the Sector are relatively weak, and there might be an upward inflection point in sales during the peak season in May-June; HTSC suggested that the demand is improving in the first quarter, and the performance recovery of Electrical Utilities New energy industry is expected.
Sinolink: The core logic of incremental policies is gradually becoming clear.
Sinolink pointed out that recent policy signals have been released intensively, and the core logic of incremental policies is becoming increasingly clear: First, diplomatic efforts are the top priority for responding to tariff shocks. The essence of 'reciprocal tariffs' is not trade, but competition. Whether China and the USA, as the largest manufacturing country and largest consumer country respectively, can gain support from more third-party countries will determine the direction of this competition. Diplomatic achievements between China and non-USA countries will determine the policy's objectives, whether to hedge the short-term decline in exports or to address long-term external risks. Second, policies represented by strengthening expectation management and liquidity management are timely and are expected to be implemented sooner. Important policies need to be complemented by increased fiscal support, and the timing of implementation is related to the weakening export data.
China Securities Co., Ltd. reports that the current expectations for the Fuel Cell Energy vehicle Sector are relatively weak, but a sales upturn may occur during the peak season in May and June.
China Securities Co.,Ltd. expressed that since 2024, the central government has allocated the subsidy amounts for the first to third years of the current promotion of Fuel Cell Energy vehicles to localities, and the subsidy for the third year of 4.21 has been issued, meaning that all national subsidies for promoting Fuel Cell Energy vehicles have been disbursed by 2024. Overall, the speed of subsidy disbursement has increased, but there remains a significant gap in promotional targets, with 45.4% still awaiting promotion in 2025 (the last year of promotion). It is conservatively estimated that in 2025, 6,300 to 7,000 Fuel Cell Energy vehicles will be promoted, representing a year-on-year growth of 17% to 30%; optimistically, it is anticipated that the targeted promotion in urban clusters will reach 15,187 vehicles in 2025, representing a year-on-year growth of 181%. In March 2025, sales of Fuel Cell Energy vehicles began to rebound, with sales of 303 vehicles, a year-on-year increase of 35.8%, marking the first positive year-on-year growth this year. Considering the clear seasonality of Fuel Cell Energy installations, with peaks in June and the fourth quarter each year, visibility on this year's sales should continue to monitor the installation volume in peak months.
HTSC: Demand is improving in the first quarter, and performance recovery in the Electrical Utilities and New energy Fund sectors is expected.
HTSC believes that in the first quarter of 2025, the demand in various fields of the Electrical Utilities New Energy Sector will improve, and performance recovery is expected. Among them, the demand for Electric Vehicles in the first quarter is not weak during the off-season, and it is anticipated that most lithium battery Industry Chain companies will see an increase in volume and stable profits; the demand for wind power is highly buoyant in the first quarter, with accelerated construction of land and sea wind projects leading to high growth in production and shipments in the Industry Chain; the rush to install solar power drives price increases in the Industry Chain, and losses in the first quarter may narrow quarter-on-quarter; in the energy storage sector, the rush to install and export in the USA and China supports demand, while Europe’s industrial and commercial large-scale energy storage also supports performance; and in the industrial control sector, demand looks good in the first quarter, with high interest in AIDC and Siasun Robot&Automation.
