BofA: More positive view on the energy storage industry, raised target price for Contemporary Amperex Technology Co. Ltd. to HKD 570.

Bank of America Securities released a research report stating that the 2025 World Energy Storage Conference was held last week in Ningde City, Fujian Province, with many Chinese electric vehicle companies and battery companies participating. Currently, the outlook for the energy storage industry is increasingly positive. The bank expects that the demand for energy storage batteries from 2025 to 2030 will remain strong, driven by domestic policy support and overseas market growth. Industry experts predict that by 2030, China's cumulative installed capacity of battery energy storage will reach 240GW. In addition, the demand for energy storage in Europe and emerging markets will remain strong in the next two to three years. It is expected that global energy storage demand will be around 500GWh in 2025, and will grow by approximately 30% and 25% in 2026 and 2027 respectively. Against the backdrop of anti-inferiority, Bank of America Securities expects that the prices of electric vehicle batteries in mainland China will stabilize. Based on market demand and policy support, Bank of America has raised its sales and profit forecasts for Contemporary Amperex Technology Co., Limited (CATL) for 2025 to 2027 by 3%, 4%, and 3%, and its battery shipment forecasts by 3%, 3%, and 2%. The target price has been raised from HK$475 to HK$570, with a "buy" rating. The bank has also raised the target price for China Baoan Group Co., Ltd. from HK$24 to HK$35, with a "buy" rating.