Contemporary Amperex Technology is likely to demonstrate continued momentum in
battery shipments this year, Nomura analysts write in a note. Robust demand for
energy storage systems will likely contribute to the company's revenue growth
this year, they say. The company's rising market share in the global EV battery
shipment due to higher unit battery usage per vehicle should offset weakness in
domestic passenger EV demand, they add. The company's unit profitability in the
first quarter remained resilient due to its pricing mechanism to partially pass
on cost inflation to customers, they add. Nomura maintains a buy rating for the
stock and a target price of CNY476.
