[ZX Machinery] Key Recommendation for Lithium Battery Equipment Sector: Valuations Have Fallen to Safe Lows, Industry Trend Improving

English summary

### [ZX Machinery] Key Recommendation for Lithium Battery Equipment Sector: Valuations Have Fallen to Safe Lows, Industry Trend Improving Time: 2026-07-30 10:24:01 Content: [ZX Machinery] Key Recommendation for Lithium Battery Equipment Sector: Valuations Have Fallen to Safe Lows, Industry Trend Improving. Based on analysis from the three dimensions of demand, performance, and valuation, we believe the lithium battery equipment sector deserves close attention at current levels. ⭕️On the demand side, we maintain our judgment of high prosperity in global battery investment over the medium and long term. The core driving forces come from the explosion in global energy storage battery demand, continued advancement of localized overseas plant construction, sustained investment in new technologies such as sodium-ion and solid-state batteries, and the acceleration of the new energy transition driven by global oil price fluctuations. From CATL's interim report, its capital expenditure in 2026Q2 increased 28% YoY and 2.3% QoQ, showing further acceleration. ⭕️On the performance side, leading lithium battery equipment companies are showing a trend of certain profit growth, with expectations that next year's profits may reach record highs, mainly benefiting from the sustained high growth in new equipment orders over the past two years, and the gross margins of leading companies' orders have improved. ...