The Huaxin Securities Research Report pointed out that the trade-in policy promotes demand-side elasticity. Some supply-side enterprises have begun to shrink capital expenses, and the supply and demand structure is being marginally optimized. The profit of the NEV industry chain is expected to improve quarterly in 2024. Valuation may be repaired, and the fundamental reversal still has to wait for production capacity to be cleared. Continue to select directions that are expected to contribute excess revenue, and are optimistic about liquid cooling, solid state batteries, battery materials, the Huawei chain, and robots. Recommended attention: 1) Main materials: Ningde Times, Zhongwei Co., Ltd.; 2) New directions: liquid cooling (Invec), thermal protection for new energy vehicles (Zhejiang Rongtai), consumer batteries (Haopeng Technology), Huawei car chains (BAIC Blue Valley), solid state batteries (Golden Dragon Yu), composite fluid collectors (Sanfu Xinke).