Anchoring emerging pillar industry positioning, new energy storage releases definite growth momentum

Securities Times Reporter Liang Qiangang

This year’s government work report states, “Focus on building a new type of power system, accelerate smart grid construction, develop new energy storage, and expand green energy applications.” Since 2024, “new energy storage” has been included in the government work report for three consecutive years.

At the press conference on the economy during the Fourth Session of the 14th National People’s Congress on March 6, Zheng Shanjie, Director of the National Development and Reform Commission, explicitly listed new energy storage as one of the “Six Major Emerging Pillar Industries.” He also stated that compared to 2025, the related output value of the “Six Major Emerging Pillar Industries” is expected to double or even more by 2030, expanding to over 10 trillion yuan.

New energy storage includes lithium-ion battery storage, compressed air energy storage, flow battery storage, and others. According to data from the National Energy Administration, by the end of 2025, the installed capacity of new energy storage nationwide will reach 136 million kilowatts / 351 million kilowatt-hours, more than 40 times the end of the 13th Five-Year Plan, primarily dominated by lithium-ion batteries, accounting for 96.1% of the capacity.

In 2025, the National Development and Reform Commission and the National Energy Administration issued the “Special Action Plan for the Large-Scale Construction of New Energy Storage (2025–2027),” which proposes that by 2027, the nationwide new energy storage installed capacity will reach over 180 million kilowatts, driving direct project investments of about 250 billion yuan.

Industry insiders generally believe that new energy storage plays a key role in the construction of a new power system. In the future, the reliance of power systems on energy storage stations will continue to increase, and industry development will shift from mere scale expansion to a focus on operation and application.

GF Securities believes that after the nationwide capacity price policy framework is implemented, capacity price policies in various provinces are expected to follow gradually. Capacity revenue, as an important component of storage income, will further enhance the certainty of storage profitability, and its economic viability is expected to improve. In 2026, China’s demand for new energy storage is expected to maintain high growth, potentially boosting profitability across the storage industry chain.

In the A-share market, more than 90 concept stocks related to the new energy storage industry chain are listed. As of March 9, the total market value of these concept stocks exceeds 5 trillion yuan. Since the beginning of the year, these stocks have increased by an average of over 16%, with nine stocks rising more than 50%, including GCL System Integration, Baichuan Shares, Dongfang Electric, Gotion High-tech, and others.

GCL System Integration has risen a total of 106.43% this year, ranking first. The company’s products include high-efficiency batteries, large-scale photovoltaic modules, energy storage systems, and more, providing integrated smart solar and storage solutions for clients.

Regarding valuation levels, 25 new energy storage concept stocks have a rolling P/E ratio below 30, including China Power Construction, JianTou Energy, E-Town Energy, and Luotuo Shares, with rolling P/E ratios below 15.

China Power Construction has the lowest P/E ratio at 9.55. The company’s projects in Shandong Feicheng compressed air energy storage and Hubei Yingshan iron-based flow batteries have been successfully selected as demonstration projects for green low-carbon advanced technology by the National Development and Reform Commission.

Based on disclosed 2025 annual reports, performance briefings, and profit forecast lower limits (or the announced figures if no lower limit is provided), 21 new energy storage concept stocks are expected to see net profit growth of over 20% year-on-year in 2025, with six turning profitable from losses. These include Nanjing Jincheng, Shanshan Shares, Zhiguang Electric, Penghui Energy, Gotion High-tech, and Xinde New Materials.

Taking Nanjing Jincheng as an example, the company expects net profit attributable to the parent to be between 109 million and 164 million yuan in 2025. The company states that since the third quarter of 2025, downstream demand for lithium battery separator membranes has continued to grow, with steady increases in sales; additionally, benefiting from improved supply-demand dynamics, membrane prices have gradually stabilized, and some product prices have rebounded. Coupled with government subsidies received during the reporting period, the company’s profitability has significantly improved, turning losses into gains.

Apart from the profitable stocks, companies like XianDao Intelligent, JianTou Energy, Tianci Materials, Ruitai New Materials, and Guoxuan High-tech are expected to see substantial profit growth.

XianDao Intelligent forecasts net profit attributable to the parent in 2025 to be between 1.5 billion and 1.8 billion yuan, representing a year-on-year increase of 424.29% to 529.15%. As leading domestic battery companies ramp up production and expand capacity in an orderly manner, the company’s order volume has rapidly rebounded year-on-year, with order delivery and project acceptance accelerating in sync, driving a bottoming out and rapid growth in operational performance.

(Data provided by Securities Times Central Database)