Goldman Sachs names CATL and Zhengli New Energy as preferred China
battery-sector plays, saying EV and energy-storage demand should further
concentrate share toward firms with scale, technology and cost advantages. CATL
remains the top pick; Goldman says its EV-battery business has a solid profit
base and that future incremental growth will come from storage and
integrated-energy solutions as the company shifts from cell sales to system
integration and services, boosting per-project value and margins. Goldman sets
12-month targets of HK$947 for CATL H-shares and Rmb565 for A-shares. Goldman
expects Zhengli New Energy to gain share via customer expansion, higher capacity
utilization and storage business development, forecasts its EBITDA growth to
rank among covered battery names, and maintains a buy rating with an HK$9
target.
