CITIC Securities: High oil prices and high downstream prosperity resonate together. We continue to see the value of configuring the lithium battery equipment and solid-state battery sectors.

The CITIC Securities research report stated that the lithium battery equipment industry naturally has strong capital expenditure cycle characteristics. In the early stage of the market's high growth, equipment companies rely on downstream battery manufacturers to achieve high growth through large-scale production expansion. However, when the utilization rate of downstream production capacity decreases and expansion slows down, equipment orders will fluctuate more drastically than end demand, showing a typical "second derivative" feature. Therefore, equipment manufacturers have been promoting platformization and diversification transformation, actively seeking a second growth curve, which is beginning to show some results.