Huaan maintains a "buy" rating for CALB (03931) and energy storage business as the core engine.

Huaan releases research report stating that considering the increasing global energy storage demand and the potential rise in energy storage cell prices, it is expected that CALB (03931) will achieve a net profit attributable to shareholders of 13.7/30.4/47.9 billion yuan in 2025/2026/2027 respectively, maintaining a "buy" rating. The company achieved a total operating income of 28.538 billion yuan in the first three quarters of 2025, an increase of 50.0% year-on-year; a net profit of 1.197 billion yuan, an increase of 150% year-on-year; and a net profit attributable to shareholders of 685 million yuan, a significant increase of 279.7% year-on-year, continuing its high-speed growth momentum. The gross profit margin for the first three quarters was 15.5%, an increase of 2.8 percentage points year-on-year; the sales net profit margin was 4.2%, an increase of 1.7 percentage points year-on-year; and the net profit margin attributable to shareholders was 2.4%, an increase of 1.5 percentage points year-on-year, showing a significant improvement in profitability. Key points from Huaan include: Electric Vehicle Batteries: Steadily increasing market share, continuous optimization of customer structure According to statistics from the China Automotive Power Battery Innovation Alliance, CALB's domestic electric vehicle battery installed capacity for January to September 2025 was 34.78 GWh, accounting for 7.06%, ranking third in China; at the same time, CALB also ranked third in cumulative exports of electric vehicle batteries from January to September. Passenger Cars: The company's domestic market share reached a record high, with a monthly market share of 8.25% in July. The company exclusively supports popular models such as Xiaopeng's new P7 with ultra-long range, and the development progress of new platform projects with customers such as Xiaomi, Xiaopeng, Zero Run, Geely, Toyota, and Volkswagen is smooth. Commercial Vehicles: Monthly vehicle sales volume enters the top three in the industry, with a significant increase in market share. Energy Storage Batteries: Continuous improvement in downstream demand, new breakthroughs in overseas business The downstream demand for energy storage continues to improve, with the global energy storage market maintaining a high growth rate of 40%-50% next year. The current Chinese energy storage market is gradually transitioning from mandatory storage to value-driven market, and is expected to add 150-200 GWh of energy storage in China next year; the energy storage profit model in the European market is gradually improving, with an expected 50% growth rate in the next three years; the development of AI in the United States is bringing about a large amount of additional demand for electricity load, and the integration of solar energy and storage will become an important solution. The company's energy storage cell shipments in the first half of the year ranked fourth globally. In overseas markets, the company successfully supplied the largest power plant projects in Latin America and South Africa, and entered the supply lists of many leading developers and grid companies, achieving new breakthroughs in overseas power plant business layout. The company will benefit fully from the growth in global energy storage demand. Outlook: Smooth progress in solid-state batteries, accelerated globalization layout Technological Progress: The company has made key breakthroughs in the field of solid-state batteries, with the energy density of the all-solid-state silicon-based battery system reaching 430Wh/kg, and has completed the construction of the all-solid-state battery production line. The solid-liquid hybrid battery with an energy density of 400Wh/kg has completed product development and is about to enter mass production. At the same time, the company has globally pioneered the production of 392Ah energy storage cells and 6.25MWh liquid-cooled systems, with obvious technological advantages, and larger cells such as 588, 600+ will soon enter mass production and delivery stage.