Dongguan Securities research report pointed out that as the experience and cost-effectiveness of intelligent electric vehicles are further highlighted, and coupled with consumption stimulus policies such as substitution of old for new and new energy vehicles going to rural areas, it is conducive to continuously promoting the release of new energy vehicle demand. On the industrial chain, the recent downstream replenishment demand has temporarily weakened and the industrial chain prices have fallen slightly. Pay attention to the subsequent production scheduling. In the medium term, under the guidance of industry norms, backward production capacity is expected to be cleared faster, and the pace of new production capacity expansion will slow down, which will be bullish for the improvement of high-quality production capacity utilization and the probability of marginal repair trends in the industry chain profit. It is recommended to focus on battery sectors with strong earnings growth certainty, head companies in the material sector with high-quality production capacity, and demand-increasing sectors driven by new battery technologies that promote industry chain iteration and upgrading. Stocks to watch: Contemporary Amperex Technology, BYD Company Limited, and Eve Energy Co.,Ltd.