The Ministry of Finance and three other departments recently issued a notice that they will carry out a pilot project of '100 counties, 1000 stations, and 10000 piles' from 2024 to 2026, and strengthen the planning and construction of new energy vehicle charging and swapping facilities in key villages and towns. The central government will arrange reward funds to support pilot counties in carrying out pilot work, striving to achieve full coverage of charging and swapping infrastructure in rural areas.

Research institutions predict that the number of new energy vehicles in China will increase from 21 million in 2023 to 40 million in 2025. The demand for charging electric vehicles is constantly increasing, and it is urgent to accelerate the construction of supporting infrastructure such as charging piles. In recent years, policies for the charging pile industry have been continuously introduced, requiring strong efforts to promote the construction of charging and swapping networks. In addition, the charging pile market in Europe and America is in its early explosive stage, and demand will experience significant increases. Domestic pile companies are accelerating their overseas layout and are expected to enjoy the rapid development dividends of the global industry with their high cost-effectiveness advantages.

Previously, Everbright Securities pointed out that it is recommended to focus on leading companies in the layout of charging piles in the public sector, whole pile enterprises with a high proportion of high-power DC piles, technology upgrading directions such as liquid cooling modules and liquid cooling gun lines brought by overcharging piles, and low expected battery swapping sectors. Suggested attention: Lithium battery: CATL; Power exchange stations: Hanchuan Intelligent, Shandong Weida, and GCL Energy Technology; Charging stations: Tonghe Technology, Yonggui Electric Appliances, Weimaisi, Xinhongye, and Lvneng Huichong.

According to a research report by Haitong Securities, the combination of domestic policies and demand has led to a high level of momentum in the construction of charging piles this year. The proportion of medium - and long-term exports to Europe, America, and DC piles has further opened up space. It is recommended to pay attention to the whole pile and module enterprises with a high proportion of direct current: Green Energy Huichong, Jinguan Shares, Tonghe Technology, Shenghong Shares, Daotong Technology, Jinguan Electric, Lihexing, Taiyong Changzheng, Teride, Xiangshan Shares, Eurotong, Yingkerui, Wall Nuclear Materials, Yonggui Electric Appliances, Juhua Technology, etc.