Huatai Securities said domestic electrification is accelerating and may be
underpriced by markets. Since April the AI supply chain has led performance, but
domestic and external catalysts for electrification-related sectors may not be
fully reflected in prices. Investors may be underestimating the addressable
electrification opportunity by focusing on incremental penetration while
ignoring replacement demand in the existing installed base and blind spots in
electrification use cases. Policy shifts—from last year’s push against internal
competition to this year’s compute‑power coordination—are repricing input costs
and industry scope, likely supporting continued improvement in sector momentum
and earnings. Recommended exposures: lithium batteries/energy storage, mining
machinery, forklifts, commercial vehicles and shipbuilding.
