Target price raised by 33%! J.P. Morgan bullish on Contemporary Amperex Technology (300750.SZ): Technological innovation and global market expansion driving growth.

On the evening of January 21, Contemporary Amperex Technology (300750.SZ) disclosed its annual performance forecast for 2024, expecting a net profit of up to 53 billion yuan, a 20% increase year-on-year. With the continuous expansion of the global new energy vehicle market and the rapid development of the energy storage market, as a leading company in the industry, Contemporary Amperex Technology will fully benefit from this trend. In a report released on the 23rd, JPMorgan Chase stated that due to accelerated sales growth, potential increase in unit economic benefits, and leading technological position, they are optimistic about Contemporary Amperex Technology's core competitive advantages. They raised their target price for December 2025 to 400 yuan, a significant increase of 33% from the target price set at 300 yuan in June of last year, representing a 53.9% increase compared to the closing price on Tuesday (259.85 yuan). EU market share expected to increase significantly to 50% The report pointed out that recent data shows that demand for Contemporary Amperex Technology batteries will continue to be strong in 2025, mainly due to: (1) Stimulus measures for car companies to expand their sales through trade-in programs, and stable domestic orders; (2) Strong demand for ESS (energy storage systems) batteries, especially from markets outside of China. Constrained by emission reduction targets, JPMorgan Chase expects the penetration rate of the European pure electric car industry to increase from 14.5% in 2024 to 17.5% in 2025, with manufacturers needing to increase sales of pure electric vehicles by about 20% year-on-year. Coupled with the prospect of key new models being launched by EU car companies, Contemporary Amperex Technology's market share in the European region is expected to further expand, with demand growth from the EU exceeding 30%. The report predicts that Contemporary Amperex Technology's market share in the EU will gradually increase from about 35% in 2024 to around 50% in the long term, with the company already having backlog orders from EU car companies for about 50% of next-generation platforms. Square batteries, super fast charging, high energy density... Strong technological advantages Technological innovation is also a core advantage that puts Contemporary Amperex Technology in a leading position. The report believes that Contemporary Amperex Technology has significant advantages in sodium-ion batteries, super fast charging technology, ESS innovation, including pioneering square batteries, early industry focus on high energy density batteries, and leading positions in ultra-fast charging technology. Firstly, Contemporary Amperex Technology is a leader in high energy density battery technology, especially in the development of nickel-cobalt-manganese (NCM) batteries and lithium iron phosphate (LFP) batteries. The company has long focused on high energy density NCM batteries, especially NCM811 batteries, which have an energy density about 12% higher than traditional NCM523 batteries, significantly increasing the range of electric vehicles; through the cell-to-pack (CTP) technology, Contemporary Amperex Technology has significantly improved the energy density and performance of LFP batteries. Secondly, Contemporary Amperex Technology is a global leader in fast charging technology, with its 4C LFP battery and 5C/6C NCM battery already commercially applied. For example, the Kirin battery from Contemporary Amperex Technology supports fast charging of up to 5C or even 6C, capable of charging the battery from 30% to 80% in 15 minutes, which is unique on a global scale. Thirdly, in the ESS field, Contemporary Amperex Technology has launched the 280Ah high-capacity battery and the TENER energy storage system in 2024. The 280Ah battery has a cycle life of up to 12,000 cycles, significantly reducing the levelized cost of electricity (LCOE) for energy storage projects; the TENER energy storage system uses a 587Ah ultra-large capacity battery, with an energy density of 430Wh/L, achieving zero capacity and zero power degradation within five years. The report also added that Contemporary Amperex Technology continues to introduce innovative products and technologies to meet different market demands. For example, their second-generation sodium-ion battery is expected to be launched within the year, with an energy density exceeding 200Wh/kg, significantly improving low-temperature performance and safety, and is expected to be widely used in electric vehicles and energy storage systems. This article is reprinted from "Wall Street See News", GMTEight Editor: Chen Xiaoyi.