In recent years, the speed of Chinese electrification transition has almost beat the other countries around the world. From January to November 2021, the world share of China's new energy passenger vehicles reached 52%, of which it reached 60% in November.
In addition, the penetration rate of new energy vehicles in China is also rising rapidly. In terms of last December's data, the Chinese retail penetration of new energy vehicles was 22.6% and the annual penetration rate was 14.8%, a significant increase from 5.8% in 2020.
Looking back at 2021
In 2021, the trend of new energy sector in A-shares started from the new energy vehicles at the end of March, and photovoltaic concept stocks outbreak at the end of April, and wind energy concept stocks were strong at the end of July; at the end of October, other new energy sub-segments were all not weak. Each sub-segment in EV industry topped and fluctuated at a high price.
However, near the end of the year, the popular new energy sector was constantly falling back, even the leading stock CATL plunged.
As of December 29, within a month, the share price of CATL had a cumulative drop of 12.53% and a maximum drop of 7.28% in a single day. CATL is the number one weighted stock of GEM, and also the leading lithium enterprise. Led by it, GEM once plunged, lithium, new energy vehicles and other sectors had also suffered.
In 2021, in the U.S. stock market, NIO fell 35%, XPeng rose 17.5% and Li Auto rose 11.3%. Although both XPeng and Li Auto's share prices were up to no more than 20%, their market value was up nearly 30%, better than most Chinese stocks.
Outlook for 2022
Since this year, with the shocks in the market and the changing focus on different sectors, individual stocks generally retrace. However, investment institutions believe that in the medium and long term, guided by the background of the "Peak Carbon Dioxide Emissions and Carbon Neutrality" target, the market for EV has not yet ended.
Essence Securities expects the new energy vehicle industry to be fully positive in 2022. The bank said that the scale expansion of new energy vehicles and technological advances have brought about continued improvement in cost reduction; at the same time, with the implementation of the decreased subsidy and rising raw material prices, the prices of some models have seen an upward adjustment, but still does not reduce consumer demand. New energy vehicle production and sales are expected to continue to grow in 2022.
Cinda Securities pointed out that under the global carbon-neutral consensus, the new energy vehicle track has long-term certainty. In recent years, the Chinese new energy vehicle market has entered the consumer-driven and sales repeatedly exceed expectations, continuing to boom.
Which stocks are worthy of attention?
CITIC Securities said that 2022 is expected to become the first year of rapid development of the battery swap industry with the improvement of policies, capital, and its own product strength. And it is expected that the industry will add more than 3,000 new battery swap stations. In 2025, there might be more than 10,000 stations, which expand 10 times in five years.
In the short term, the relevant operators and equipment suppliers are expected to benefit from the high growth of the industry; in the long term, the bank recommended the third-party battery suppliers and operators with strong resource integration capabilities, such as CATL, GCL Energy Technology, etc.
Northeast securities issued a research report said that after benefiting from the downward price of raw materials and smooth price increases, earnings are expected to be fully recovered. For lithium-related companies, it recommended CATL and suggested to pay attention to Farasis Energy.
Submitted January 21, 2022 at 02:44AM by MUbigeye https://ift.tt/3FO3opx
