China Consumer Discretionary 30 August 2018 China New Energy Vehicles Battery study: emerging giants ahead of the curve We forecast China’s battery shipments to show a CAGR of 41% over 2017-20E on an NEV sales CAGR of 39% Likely near-term pain from high pricing pressure, but could be positive Kelvin Lau for market leaders as they gain market share (852) 2848 4467 Initiating on CATL with a Buy (1); reiterating Buy (1) calls on Guoxuan
[email protected] and BYD; pecking order: CATL, Guoxuan and BYD Jay Lu (852) 2848 4970
[email protected] See important disclosures, including any required research certifications, beginning on page 52 China Consumer Discretionary 30 August 2018 China New Energy Vehicles Battery study: emerging giants ahead of the curve We forecast China’s battery shipments to show a CAGR of 41% over 2017-20E on an NEV sales CAGR of 39% Likely near-term pain from high pricing pressure, but could be positive Kelvin Lau for market leaders as they gain market share (852) 2848 4467 Initiating on CATL with a Buy (1); reiterating Buy (1) calls on Guoxuan
[email protected] and BYD; pecking order: CATL, Guoxuan and BYD Jay Lu (852) 2848 4970
[email protected] What's new: In this report, we analyse the growth prospects of China’s Key stock calls new energy vehicle (NEV) market, EV battery supply and demand, and New Prev. industry development from now until 2020. Taking into account likely strong Contemporary Amperex Technology (300750 CH) Rating Buy market growth as well as cuts to NEV subsidies, we are positive on the Target 86.00 outlook for market leaders, especially those with cutting-edge technology.