Industrial Securities has issued a research report forecasting that ZENERGY's net profit attributable to shareholders for 2026-2028 will be RMB 1.29 billion, RMB 1.876 billion, and RMB 2.598 billion, representing year-on-year increases of 59.6%, 45.4%, and 38.5%, respectively. As of the market close on April 14, 2026, the company's stock price corresponds to a price-to-earnings ratio of 13.6x, 9.4x, and 6.8x for 2026-2028. On April 14, 2026, a large volume of pre-IPO shares became eligible for trading, releasing associated risks. On the same day, the controlling shareholder announced a one-year voluntary lock-up commitment, demonstrating confidence. The firm is optimistic about the company's long-term growth prospects and, considering the release of the lock-up risk and the current attractive valuation, has upgraded its rating to "Buy," advising investors to monitor the timing for establishing positions. The key points from Industrial Securities are as follows:
ZENERGY maintains a pragmatic operational style with an automotive components heritage. The company initially focused on passenger vehicle batteries, driving shipment growth and profit realization through differentiated strategies like platform-based products and flexible manufacturing, leading to significant revenue and profit growth in 2025. Total capacity is expected to double in 2026, with energy storage capacity set to come online soon, creating a second growth curve. The company is also developing new products such as aviation power batteries to expand its long-term potential.
In 2025, the company achieved both volume and profit growth, with profits exceeding expectations. Lithium battery shipments increased 66.7% year-on-year to 19.82 GWh, driving revenue up 57.9% to RMB 8.101 billion. Power batteries accounted for 94.8% of revenue, while energy storage and other segments contributed 5.2%. Benefiting from improved capacity utilization and enhanced economies of scale, the gross margin rose 3.8 percentage points to 18.4%. Consequently, gross profit surged 99.3% to RMB 1.491 billion. Net profit attributable to shareholders increased 788.4% to RMB 809 million, with the net profit margin rising 8.2 percentage points to 10.0%. Joint ventures contributed RMB 360 million, while the core business contributed RMB 449 million, with the core business net profit margin increasing 9.7 percentage points to 5.5%.
The company demonstrates significant capacity expansion potential. It added 10 GWh of new capacity in 2025, bringing total year-end capacity to 35.5 GWh. Guidance indicates the commissioning of 15 GWh for power batteries and 20 GWh for energy storage batteries in 2026, raising total capacity to 70.5 GWh. Furthermore, the company plans for 50 GWh of flexible energy storage production capacity, targeting applications such as long-duration energy storage, computing centers, and decentralized power supply models, while also catering to sectors like new energy vehicles, aircraft, robotics, and marine vessels. All this capacity is located in Changshu, facilitating synergies.
ZENERGY is increasing its market share in passenger vehicle power batteries. It collaborates with customers to develop standardized cells and platform-based battery packs. Its flexible production lines allow for low-cost order switching, and the high proportion of new production lines provides a late-mover advantage. According to the China Automotive Power Battery Industry Innovation Alliance, the company's installed power battery capacity for new energy passenger vehicles in China reached 15.67 GWh in 2025, a 62% year-on-year increase, with market share rising 0.57 percentage points to 2.58%, ranking 7th. The company has secured designated supplier status for core models from multiple leading automakers, including Leapmotor, GAC Toyota, SAIC-GM-Wuling, SAIC General Motors, GAC Trumpchi, FAW Hongqi, SAIC Motor Passenger Vehicle, Volkswagen, and Toyota. Its customer base is becoming more diversified, with volume expected to continue growing in 2026.
The energy storage segment represents a promising second growth curve. With 20 GWh of energy storage capacity scheduled for 2026, the company anticipates large-scale sales of four products (100Ah, 235Ah, 587Ah, and 588Ah) for diverse applications such as residential storage, commercial and industrial storage, independent energy storage power stations, long-duration storage, and AIDC, establishing a second growth curve.
Progress is being made in aviation batteries. ZENERGY is the first Chinese power battery company to obtain AS9100D aviation certification. Its batteries have received airworthiness certification from the Civil Aviation Administration of China for use in the Liaoning General Aviation fixed-wing manned electric aircraft RX1E, achieving the industry's first batch supply of battery packs for a 2-seater electric fixed-wing manned aircraft. It has also secured an exclusive development contract for a fixed-wing 4-seater aircraft. Additionally, the company has signed an exclusive development agreement with Zero Gravity Aircraft Industry Co., Ltd. for the multi-rotor ZG-ONE model.
Risk factors include intensified industry competition, potential shortfalls in shipment growth, fluctuations in product and raw material prices, customer履约 risk, overseas policy risks, and asset impairment.