Senior Material (HKEX: 06067) shares plummeted more than 17% during trading, hitting a new all-time low of HK$7.63 and falling below its initial public offering price of HK$8.98.

At the time of writing, the stock was down 17.2% at HK$7.70, with a turnover of HK$50.63 million.

The company is a manufacturer of lithium-ion battery separators. According to Frost & Sullivan, it held a global market share of 11.6% based on total 2025 shipment volume and has ranked second globally in lithium-ion battery separator shipments for six consecutive years.

Its main products include coated separators, wet-process separators, and dry-process separators, with coated separators accounting for over 70% of its revenue.

For the first quarter of this year, the company reported revenue of 1.081 billion yuan, a year-on-year increase of 21.53%. However, its net profit attributable to shareholders was 29 million yuan, a decrease of 37.33% compared to the same period last year.

Analysis from Guojin Securities noted that the energy storage and lithium battery sectors have been heavily impacted in a weak market. A prevailing sentiment of "seeking reasons for the decline" has led to unfounded concerns fermenting in the market regarding future energy storage demand and potential replacement by solid-state batteries, creating a negative feedback loop with stock prices.

This stands in stark contrast to the current high-growth trend of strong production and sales across the industry chain. The firm believes robust overseas energy storage demand persists, and China is approaching a peak grid-connection period in the second half of the year, which aligns with the current surge in orders for energy storage battery cells.

It is projected that energy storage demand will maintain rapid growth through 2027, and there is currently no substantiated rationale for a bearish outlook on the sector.