JPMorgan: Market Overly Pessimistic on China Energy Storage Demand, Maintains Positive View Through 2030
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JPMorgan has released a research report maintaining a positive outlook on energy storage demand through 2030, despite significant corrections in Chinese energy storage stocks since June. The bank believes the market is overly pessimistic, forecasting a compound annual growth rate of approximately 22% for China's energy storage installations through 2030, and projecting battery shipments to grow about 20% year-on-year in 2027, contrasting with market expectations of near-zero growth. JPMorgan continues to list CATL (300750.SZ), Sungrow Power Supply (300274.SZ), and Deye Technology (605117.SH) as top picks. It views CATL as the best option to capture global energy storage growth due to its leading market share, strong overseas exposure, and attractive valuation after the recent adjustment, setting a target price of 725 Hong Kong dollars.
Source report
According to a research report released by JPMorgan, since June this year, shares of China's energy storage value chain companies listed on the A-share market have experienced significant corrections. Stocks such as CATL (300750.SZ), Hyperstrong (688411.SH), Deye Technology (605117.SH), and Sungrow Power Supply (300274.SZ) have underperformed the broader market by a wide margin. This reflects investor concerns over weakening domestic energy storage demand in 2025 and rising geopolitical uncertainties.
However, JPMorgan believes the market has become overly pessimistic. The bank maintains a positive outlook on energy storage demand through 2030, forecasting a compound annual growth rate (CAGR) of approximately 22% for China's energy storage installations by that year. It also expects battery shipments to grow by about 20% year-on-year in 2027, compared to market expectations of near-zero growth.
Among the stocks covered, JPMorgan continues to list CATL (03750), Sungrow Power Supply, and Deye Technology as top picks. The bank views CATL as the best option to capture global energy storage growth, citing its leading market share, strong overseas exposure, and attractive valuation following the recent correction. JPMorgan has set a target price of HKD 725 for CATL.
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智通财经Neutral / independent
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JPMorgan: Market overly pessimistic on China energy storage; maintains positive outlook through 2030