HK Stock Market Move | TIANNENG POWER(00819) rose more than 3% in the final trading session, benefiting from the overall recovery of the lead-acid battery industry for electric bikes. The company is refocusing on its lead-acid business.

TIANNENG POWER (00819) rose more than 3% in the final trading session, rising to 3.58% by the close of trading, reaching 7.81 Hong Kong dollars, with a transaction amount of 34.33 million Hong Kong dollars. Tianfeng pointed out that with the implementation of two-wheeler vehicle replacement and new national standards, the two-wheeler industry is expected to return to double-digit growth by 2025, benefiting lead-acid batteries from the overall recovery of electric motorcycles. Looking ahead, the penetration rate of lead-acid batteries is expected to increase. Safety is the top priority for two-wheeler batteries, and lead-acid is the best choice with a weak possibility of being replaced. In addition, the relaxation of weight limits in the new national standards is expected to slightly increase the battery capacity, and the medium to long-term overseas business will also contribute to new growth. The bank pointed out that Tianeng's lead-acid power battery sales ratio in the primary vehicle market and aftermarket replacement market is maintained at around 1:3, with about 75% of products directly facing end consumers. Therefore, lead-acid batteries are not only part of the mid-stream manufacturing sector, but also have consumer product attributes. The company cooperates closely with over 3,000 distributors, with over 400,000 terminal stores, establishing a wide distribution and after-sales service network, and perfecting efficient feedback mechanisms. Starting from 2021, ROE has decreased due to the impact of the lithium battery business, but with no further addition of lithium battery capacity, the focus will return to lead-acid business, and ROE is expected to rise again.