Goldman Sachs: First to give Contemporary Amperex Technology (03750) a "buy" rating and optimistic about the potential for energy storage system integration.

Goldman Sachs released a research report stating that it has initiated coverage of Contemporary Amperex Technology (03750) with a "buy" rating for the first time. The target price for its H shares is 946 Hong Kong dollars. The report points out that while the market generally sees energy storage business as an opportunity for sales growth, Goldman Sachs believes that energy storage system integration will be the key driver for value creation in the next phase for Contemporary Amperex Technology. This integration can drive margin expansion, create high-margin recurring service revenue, and support a revaluation of the company's valuation. Goldman Sachs predicts that the proportion of energy storage systems integration, including both DC and AC solutions, in Contemporary Amperex Technology's energy storage shipments will increase from about 33% in 2025 to nearly 66% in 2030. This will drive the energy storage gross margin from about 27% to around 30%, and the unit gross profit from 138 RMB per kilowatt-hour to approximately 200 RMB. In terms of electric vehicle batteries, Goldman Sachs also expects Contemporary Amperex Technology's market share in China to steadily increase from 46% in 2025 to 50% in 2030.