[Soochow Securities Electric New Energy] Lithium Batteries: Demand Continues to Grow Strongly, Valuations at Historical Bottom, Firmly Bullish!

English summary

# Lithium battery holdings at historical low, leaders still guide high growth, firmly bullish: 1) CATL maintains 20-30% CAGR demand growth outlook for the next five years, and believes next year's growth more optimistic, far better than pessimistic market expectations. Second-tier battery makers mostly expect 40-50% shipment growth in 2027. 2) Based on undervaluation and confidence, CATL plans to buy back 20-40 billion yuan shares for cancellation. Many industry peers, including EVE, Putailai, Huayou, Tiannai, Kedali, Dazhong, etc., are buying back shares or increasing executive holdings, showing confidence. 3) Q2 lithium battery holdings fell 2pct to 10%, the lowest in 5 years, fully reflecting pessimistic expectations; next year's valuation is 10-15x, clearly undervalued. Reiterate: # August is peak season, 27% growth can be maintained. Industry chain feedback: July leading player output 105GWh+, MoM +5%+, and Dadong Think Tank feedback August industry output +7%, exceeding expectations; Q3 peak season inflection point has appeared. ...