Huaan Securities issued a research report maintaining a "Buy" rating on CALB (03931), citing rising global energy storage demand and potential price increases for energy storage battery cells. The firm projects CALB's net profit attributable to shareholders will reach RMB 1.37 billion, RMB 3.04 billion, and RMB 4.79 billion in 2025, 2026, and 2027, respectively.
In the first three quarters of 2025, CALB reported total operating revenue of RMB 28.538 billion, up 50.0% year-on-year, with net profit surging 150% to RMB 1.197 billion. Net profit attributable to shareholders skyrocketed 279.7% to RMB 685 million, maintaining rapid growth momentum. Gross margin improved by 2.8 percentage points to 15.5%, while net profit margin rose 1.7 percentage points to 4.2%. The attributable net profit margin increased by 1.5 percentage points to 2.4%, demonstrating significant year-on-year profitability improvements.
Key insights from Huaan Securities:
Power Batteries: Market Share Growth and Optimized Client Structure According to the China Automotive Battery Innovation Alliance, CALB ranked third domestically with 34.78GWh installed capacity (7.06% market share) in Jan-Sept 2025. It also secured the third position in cumulative power battery exports during the same period.
Passenger Vehicles: CALB achieved a record-high domestic market share of 8.25% in July. The company exclusively supplies batteries for popular models like XPeng's P7 long-range edition and has made smooth progress in new platform projects with clients including Xiaomi, XPeng, Leapmotor, Geely, Toyota, and Volkswagen.
Commercial Vehicles: Monthly installed capacity entered the industry's top three with substantial market share growth.
Energy Storage Batteries: Strong Demand and Overseas Breakthroughs Global energy storage demand remains robust, with the market expected to maintain 40%-50% growth in 2026. China's energy storage sector is transitioning from mandatory allocation to value-driven models, potentially adding 150-200GWh capacity next year. Europe's improving profitability models could drive 50% growth over three years, while U.S. AI development fuels electricity demand, making solar-storage hybrid systems crucial.
CALB ranked fourth globally in H1 2025 energy storage cell shipments. The company secured contracts for Latin America and South Africa's largest power station projects and entered supplier lists of leading developers and grid operators, marking significant overseas expansion.
Outlook: Solid-State Battery Progress and Global Expansion CALB achieved breakthroughs in solid-state batteries, developing silicon-based cells with 430Wh/kg energy density and completing production line construction. Hybrid solid-liquid batteries (400Wh/kg) are ready for mass production. The company also launched industry-first 392Ah storage cells and 6.25MWh liquid cooling systems, with 588Ah and 600+Ah large cells entering mass production soon.