Energy storage battery shares led the market on Wednesday (August 21), with the benchmark index tracking the New Energy Battery ETF HuaBao (159071) rebounding strongly as market sentiment improved noticeably. Of the index's 50 constituent stocks, 43 advanced while 7 declined, reflecting broad-based gains. The "AIDC transformer leader" Jinpan Technology climbed nearly 13% on stellar earnings, the "AI power supply leader" Megmeet rose over 8%, and Tongfei Co, Star Cloud and others advanced more than 6%.
A wave of major developments in the new energy battery industry has converged to lift sector sentiment, with better-than-expected results from industry leaders serving as the core catalyst. CATL reported first-half 2026 revenue of 276.9 billion yuan, up 55% year-on-year, with net profit attributable to shareholders of 8 billion yuan, up 42%. Its combined power and storage battery shipments exceeded 432GWh, with global market share continuing to climb. EVE Energy expects first-half net profit to grow 95% to 110% year-on-year, while volume delivery of its 628Ah ultra-large-capacity cells is accelerating.
Industry production scheduling data continues to beat expectations. According to GGII data, domestic lithium battery production scheduling for August has surpassed 300GWh, up approximately 7%-9% month-on-month. Energy storage cell scheduling exceeded 120GWh, accounting for 40% of the total, as US and Middle East markets enter the concentrated stocking and delivery phase ahead of year-end grid connections.
A wave of cell price increases has officially begun. CATL's official online store raised its 314Ah energy storage cell price from 414 yuan/Wh to 0.423 yuan/Wh, an increase of 2.17%, signaling the industry's supply-demand dynamics shifting from surplus to tight balance. Additionally, major capacity expansion projects continue to advance, including Hunan Yuneng's 24 billion yuan mining-integration project and Sunwoda's 200GWh mega-factory in Shandong, underscoring leading companies' confidence in future demand.
According to a report from Guohai Securities, the simultaneous appearance of increased production scheduling and price hikes in the lithium battery industry is a key indicator that the sector is entering an upcycle in the second half of the year. This round of cell price increases is fundamentally a structural rally driven by energy storage demand succeeding power batteries as the core growth engine, compounded by the new consumption tax policy. August's better-than-expected production data has solidified the foundation for a strong third-quarter peak season, with demand certainty strengthened by the dual engines of energy storage and new energy vehicles.
In terms of valuation, the benchmark index tracking the New Energy Battery ETF HuaBao (159071) currently trades at a PE of approximately 24 times, around the 50th percentile of the past three years, making current valuations relatively attractive. Central China Securities suggests that over the medium to long term, the development prospects of the domestic and international new energy vehicle industry are clear, recommending continued focus on leaders across key sub-sectors while closely monitoring the commercialization progress of new technology routes such as solid-state batteries and sodium-ion batteries. The report also flagged the need to monitor upstream raw material price trends, monthly sales figures, and domestic and international policy changes.
Energy storage addresses the core mismatch between electricity consumption and generation. With surging and volatile computing power demand, combined with rapidly growing but intermittent renewable energy output, storage that smooths power transmission has become the lifeblood of the era. The benchmark index for the New Energy Battery ETF HuaBao (159071) - the Guozheng New Energy Battery Index - has electrical equipment accounting for over 80% of its composition, covering upstream and downstream industries related to new energy storage batteries. Its top ten heavyweight stocks include CATL, EVE Energy, Envicool and Sungrow Power, with combined weight exceeding 60%.
Market volatility may be significant in the near term, and short-term gains or losses do not predict future performance. Fund investments may incur losses. Investors are advised to invest rationally based on their own capital position and risk tolerance, with close attention to position sizing and risk management. As of July 31, 2026, the index's top constituents include CATL at 12.03%, EVE Energy at 10.28%, Sungrow Power at 8.42%, Megmeet at 5.79%, Deye at 5.67%, Envicool at 4.66%, Keda at 4.60%, Gotion High-Tech at 4.10%, Sunwoda at 3.42%, and Hyperstrong at 2.84%.
The constituent stocks mentioned are for display purposes only and do not constitute investment advice of any form, nor do they represent the holdings or trading activities of any fund under the management company. The New Energy Battery ETF HuaBao passively tracks the Guozheng New Energy Battery Index, which had annual returns of 58.83%, -14.83%, -33.42%, 8.81% and 55.15% from 2021 to 2025, with corresponding annual volatility of 4.19%, 6.21%, 3.17%, 4.83% and 4.27%. Historical backtested performance does not predict future index returns. The fund is issued and managed by HuaBao Fund, and distribution institutions do not bear responsibility for the product's investment or redemption obligations. Investors should carefully read the fund contract, prospectus and other legal documents to understand the risk-return characteristics of the fund and select products matching their own risk tolerance. The fund's risk rating is R3-medium risk, suitable for balanced (C3) and above investors. Funds carry risks, and investment must be undertaken with caution.