CITIC Securities Construction Investment: Venture capital enters a period of supply and demand mismatch, optimistic about the elasticity of performance growth.

CICC research report states that VC has entered a new round of supply-demand mismatch due to the production capacity not meeting expectations. The current price increase cycle has started, and the sector has the performance elasticity: VC is a dangerous chemical, with high requirements for technology and environmental protection. With high growth in energy storage demand and supply increase lower than expected, the supply and demand will tighten in the third quarter of 2026. We believe that with the arrival of the peak season, VC prices will enter an upward cycle. This week, VC prices have already risen by 5000 yuan/ton, and we believe that the prices will continue to increase, potentially reaching the range of 180,000 to 200,000. We see good investment opportunities in the sector with better-than-expected performance under the rise in VC prices.