Lithium battery: usher in a new opportunity to do more

Although the A-share market rebounded last Friday, it is difficult to change the downward trend of the single-week shock. However, the once-weak lithium battery sector was repeatedly active last week. Related stocks such as Jiangsu Cathay Pacific (002091), Shanshan (600884), and Shengsheng Technology (300073) were all tenacious during the stock market decline.
The recent activity of the lithium battery sector is mainly affected by two pieces of information. First, there are reports that the cumulative production and sales volume of China's new energy vehicles will reach 5 million by 2020. This figure depicts the broad prospects for the development of new energy vehicles in the future, so it also opens up the high growth space for lithium batteries.
Second, after the earthquake in Japan, the lithium battery industry structure will undergo major changes. Japan is a traditional powerhouse in the lithium battery industry, producing more than 50% of the world's lithium battery. Earthquakes, tsunami and nuclear power accidents have severely impacted the lithium-ion battery industry in Japan. China has already had certain competitive strength in the fields of anode materials and electrolytes, so it can form a certain substitution effect.
The above two major pieces of information mean that the lithium battery industry is facing new development opportunities and will inevitably promote the revaluation of the lithium battery sector by various funds, thus forming a new buying power.
At the same time, the lithium battery sector has been lagging behind the market in this year's performance. The two positive factors mentioned above mean that the lithium battery sector is expected to gain new momentum for the performance exceeding the expected growth, thus providing new impetus for the rise of the stock price.
Investors can focus on two types of stocks: First, from the point of view of industrial breakthroughs, the domestic lithium battery industry still has shortcomings. The lack of technical support for separators, lithium hexafluorophosphate, and other core products has been subject to import restrictions. However, the strong downstream demand in recent years has prompted breakthroughs in the technological breakthroughs of related products, and the industrialization trend is more optimistic. Therefore, attention can be paid to the production of Fosuo Plastics Co., Ltd., Jiangsu Cathay Pacific, which produces lithium hexafluorophosphate, and Jiujiu Jiu. The second is the rapid expansion of production capacity, which is expected to become a high-quality alternative to the global lithium battery industry after the earthquake in Japan. For example, Dangsheng Technology, China Baoan, and Shanshan are also worthy of active tracking.