Lates News

Goldman Sachs issued a report stating that the Wande China Lithium Battery Index has risen by approximately 40% in the past 60 trading days, significantly outperforming the 18% increase in the Shanghai and Shenzhen 300 Index. The bank maintains a cautious view that even though the short-term battery market is tense, battery prices may sustainably rise. Their sensitivity analysis shows that a 10% increase in prices could bring a profit increase of 30% to 60% next year, reflecting the high price sensitivity of companies such as CATL, SVOLT, and EVE Energy. The bank believes that the recent stock price increase of battery companies has already factored in the expectation of a 2% to 5% increase in average selling prices next year. They prefer Ningde Times and CATL, considering that both will benefit from cyclical recovery and attractive valuations. Their target price for Ningde Times' A-shares is 369 yuan with a "buy" rating, and for their H-shares, it is 470 Hong Kong dollars with a "neutral" rating; while their target price for CATL is 54.8 yuan with a "buy" rating.