New energy storage has been listed as a new pillar industry! 21 concept stocks with high performance growth

Developing new energy storage is a rigid requirement for building a new power system.

New energy storage listed as an emerging pillar industry

On March 5th, the 14th National People’s Congress held its fourth session in Beijing. This year’s “Government Work Report” explicitly states the focus on building a new power system, accelerating smart grid construction, developing new energy storage, and expanding green electricity applications. In 2024, “developing new energy storage” was included for the first time in the “Government Work Report,” marking the third consecutive year it has been mentioned.

Additionally, Zheng Ganjie, director of the National Development and Reform Commission, stated at a press conference on March 6th that China will focus on developing six major emerging pillar industries and six future industries. The six emerging pillar industries include integrated circuits, aerospace, biomedicine, low-altitude economy, new energy storage, and intelligent robotics. Zheng Ganjie noted that preliminary estimates suggest that the output value of these six emerging industries will approach 6 trillion yuan by 2025, and is expected to double or more by 2030, expanding to over 10 trillion yuan.

New energy storage includes lithium-ion battery storage, compressed air energy storage, flow battery storage, and others. According to data from the National Energy Administration, by the end of 2025, the nationwide installed capacity of new energy storage will reach 136 million kilowatts / 351 million kilowatt-hours, a more than 40-fold increase compared to the end of the 13th Five-Year Plan. Currently, the industry is primarily focused on lithium-ion battery storage, accounting for 96.1% of installed capacity.

Demand for new energy storage is expected to maintain high growth

Industry insiders generally believe that new energy storage plays a key role in constructing a new power system. In the future, reliance on energy storage power stations will continue to increase, and industry development will shift from mere scale expansion to a focus on operation and application.

According to the Economic Observer, Tian Qingjun, senior vice president of Envision, stated that developing new energy storage is a rigid requirement for building a new power system. Renewable energy generation is volatile, which places higher demands on grid stability; storage, as a critical regulation resource, acts as a “stabilizer” to smooth out fluctuations in renewable output and as a “ballast” to ensure reliable power supply.

According to Xinhua News, the National Development and Reform Commission and the National Energy Administration previously issued the “Special Action Plan for the Large-Scale Construction of New Energy Storage (2025–2027),” which proposes that by 2027, the nationwide new energy storage installed capacity will reach over 180 million kilowatts, driving direct investment of about 250 billion yuan.

GF Securities believes that after the nationwide capacity electricity price policy framework is implemented, provincial capacity electricity price policies are expected to follow gradually. Capacity revenue, as an important component of storage income, will further enhance the certainty of storage profitability, and its economic viability is expected to improve. By 2026, China’s demand for new energy storage is expected to maintain high growth, potentially boosting profitability across the storage industry chain.

21 concept stocks with high performance growth

In the A-share market, more than 90 concept stocks related to the new energy storage industry chain are listed. As of the close on March 6th, these stocks have a combined market value of over 5 trillion yuan. Since the beginning of the year, the average increase of these concept stocks has been 15.33%, with 9 stocks rising over 50%, including GCL System Integration, Dongfang Electric, Baichuan Shares, Shenling Environment, Changbao Shares, and others.

GCL System Integration has increased by 98.57% since the beginning of the year, ranking first. The company’s products include high-efficiency batteries, large-size photovoltaic modules, energy storage systems, and it provides integrated smart solar and storage solutions.

Regarding valuation levels, as of March 6th, there are 25 concept stocks with a rolling P/E ratio below 30. Among them, China Power Construction, Jiantou Energy, E-Town Energy, and Camel Shares have a rolling P/E ratio below 15.

China Power Construction has the lowest at 9.61 times. The company’s projects in Shandong Feicheng compressed air energy storage and Hubei Yingshan iron-based flow batteries have been successfully selected as green low-carbon advanced technology demonstration projects by the National Development and Reform Commission.

Based on the disclosed 2025 annual reports, performance briefings, and profit forecast lower limits (or the announced figures if no lower limit is provided), there are 21 concept stocks with net profit growth of over 20% year-on-year in 2025 (including those turning profitable from losses). Six stocks have turned profitable from losses: Enjie Shares, Shanshan Shares, Zhiguang Electric, Penghui Energy, Gotion High-tech, and Xinde New Materials.

Taking Enjie Shares as an example, the company expects a net profit of 109 million to 164 million yuan in 2025. During the reporting period, since the third quarter of 2025, downstream demand for lithium battery separator membranes has continued to grow steadily; at the same time, benefiting from improved industry supply-demand dynamics, membrane product prices have gradually stabilized, with some prices rising. Coupled with government subsidies received during the period, the company’s profitability has significantly improved, turning losses into profits.

In addition to stocks turning profitable, companies like Xiandai Intelligent, Jiantou Energy, Tinci Materials, Ruitai New Materials, and Guoxuan High-tech are expected to see substantial profit growth. Xiandai Intelligent projects a net profit of 1.5 to 1.8 billion yuan in 2025, a year-on-year increase of 424.29% to 529.15%. During the reporting period, the global power battery market continued to recover, with strong growth in demand within the energy storage sector, leading to a sustained industry-wide recovery. As leading domestic battery companies increase their operating rates and expand production in an orderly manner, their order volumes have rapidly rebounded year-on-year, with order delivery and project acceptance accelerating in tandem, supporting a bottoming out and rapid growth of their operating performance.

(Source: Data Treasure)