J.P. Morgan: Maintains a positive view on energy storage demand through 2030; Contemporary Amperex Technology (03750) and others are top picks.

J.P. Morgan released a research report stating that since June this year, Chinese energy storage value chain stocks in the A-share market have undergone significant corrections, with Contemporary Amperex Technology (300750.SZ), Beijing HyperStrong Technology (688411.SH), Deye Technology (605117.SH), Sungrow Power Supply (300274.SZ), and others declining far more than the broader market, reflecting investors' concerns over a weak outlook for China's energy storage demand next year and rising geopolitical uncertainty. However, J.P. Morgan believes the market is overly pessimistic and maintains a positive view on energy storage demand through 2030, forecasting a compound annual growth rate of approximately 22% for China's energy storage installations through 2030, and expecting battery shipments to grow about 20% year-on-year in 2027, while the market expects nearly zero growth. Among the stocks, the bank continues to list Contemporary Amperex Technology (03750), Sungrow Power Supply, and Deye Technology as top picks, and views Contemporary Amperex Technology as the best choice for capturing global energy storage growth, given its leading market share, strong overseas exposure, and attractive valuation after recent corrections, with a target price of HK$725.