Jiangsu Zenergy Battery Technologies Group Co Ltd. Class H (3677) has received a new Buy rating, initiated by CMB International Securities analyst, Ji Shi.
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Ji Shi has given his Buy rating due to a combination of factors that highlight Jiangsu Zenergy Battery Technologies Group Co Ltd.’s competitive positioning and growth potential in the lithium-ion battery sector. The company benefits from a minimal legacy burden compared to its peers, allowing it to focus on operational efficiency and innovation, particularly through the use of standardized cells and platform-based packs. This strategic approach enhances its competitive edge in the market.
Furthermore, Zenergy’s sales outlook remains robust, supported by a projected 48.3% CAGR in EV battery sales volume from 2024 to 2027. The company’s diversified and improving client mix, including partnerships with major brands like GAC Toyota, VW, and SAIC Motor, is expected to boost sales and margins significantly. Additionally, Zenergy’s financial projections indicate strong revenue growth and industry-leading gross margins, justifying the Buy rating with a target price of HK$18.00.
According to TipRanks, Shi is a 4-star analyst with an average return of 17.0% and a 55.56% success rate. Shi covers the Consumer Cyclical sector, focusing on stocks such as Geely Automobile Holdings, China MeiDong Auto Holdings, and Minth Group.