Niu Niu Tong Sheng
Expert opinion: Is it worth investing in "Ning Wang"?
A group of new stock enthusiasts has a new target! With high expectations, the global Battery leader, Contemporary Amperex Technology, known as 'King Ning', plans to list in Hong Kong this year. Will this secondary listing take it to the next level? What are the investment highlights? This episode of Futubull Tongsheng will tell you.
The IPO boom is rising again, with many newly listed stocks performing brilliantly, and the focus of the Hong Kong new stock market must be on it — the global Battery leader Contemporary Amperex Technology.
Contemporary Amperex Technology, which focuses on the research, development, production, and sales of power Batteries and energy storage Batteries, is already listed in Shenzhen ( $Contemporary Amperex Technology(300750.SZ)$ ), and is now seeking a secondary listing in Hong Kong. It is understood that Contemporary Amperex Technology aims to raise approximately 39 to 54.6 billion HKD this time. In terms of fundraising amount, Contemporary Amperex Technology will be the largest IPO in Hong Kong since its listing in 2021. $KUAISHOU-W(01024.HK)$ The funds raised by Contemporary Amperex Technology this time are mainly used for overseas capacity expansion, international business development, and to supplement overseas operating capital.
What is Contemporary Amperex Technology that can reign in the battery industry? Let's start with the founder and chairman, Zeng Yuqun. It turns out that he has quite a connection with Hong Kong. According to the information, Zeng Yuqun obtained Hong Kong resident status in 2005 through the "Quality Migrant Admission Scheme"; in 2021, due to the rise in the company's stock price, his net worth temporarily surpassed $CKH HOLDINGS(00001.HK)$ founder Li Ka-shing, becoming the richest person in Hong Kong.
From its listing in 2018 to the end of 2021, Contemporary Amperex Technology has increased by over 22 times. However, the stock price, following the profit growth, began to gradually decline after peaking in 2021. Compared to the full-year profits of 2021, the growth rate has slowed down to 15.5% for the full year of 2024.
However, as one of the largest electric vehicle Battery suppliers in the Global, Contemporary Amperex Technology has many strong backing. In recent years, Contemporary Amperex Technology has collaborated with several internationally renowned Auto Manufacturers, including BMW and Volkswagen, $XIAOMI-W(01810.HK)$ and more, becoming a major supplier. $Tesla(TSLA.US)$ The power battery products include Cells, modules, and battery packs, catering to the application fields of pure electric and hybrid Passenger Vehicles to Commercial Vehicles. From 2015 to September 2024, Contemporary Amperex Technology's cumulative R&D investment reached 66.2 billion yuan.
In 2024, nearly 70% of King Ning's revenue comes from power batteries, followed by energy storage battery systems, which account for only 15%.
As of the end of November last year, the cumulative installation of power batteries reached approximately 17 million vehicles, meaning that one out of every three Electric Vehicles globally uses batteries from Contemporary Amperex Technology.
Energy storage batteries are used in more than 1,700 projects globally.
In 2024, for the global energy storage market and power battery shipment volume, Contemporary Amperex Technology holds the top position with a 38% market share. In comparison, BYD, which also develops battery technology, only accounts for 15%. Last year, within the domestic power battery installation volume, Contemporary Amperex Technology's market share exceeded 45%, while BYD only had about 25%.
Is the future of Contemporary Amperex Technology more opportunities or risks? It is believed that national support is indispensable.
Based on the national carbon neutrality goals, the government encourages the development of the Electric Vehicles and Energy storage market, promoting the development of power Battery and energy storage Battery industries, leading to increased demand. However, at the same time, there is a slowdown in the Global electric vehicle market demand, which in turn affects the performance of Contemporary Amperex Technology.
"The Financial Times" believes that the crisis for Contemporary Amperex Technology may come from the USA and Europe's countermeasures against Chinese electric vehicles, and even more so, domestic Other electric vehicle manufacturers are competing to produce automotive batteries.
Will the new stock market continue to thrive this year? If it successfully goes public, is Contemporary Amperex Technology a must-buy new stock? What development focuses will it have in the future? Let's listen to expert analysis (the following opinions come from independent stock commentator Xiong Liping):
Currently, the market interest in battery or Electric Vehicles related battery stocks is not as high as it was before.
The final pricing of Contemporary Amperex Technology's listing is also worth noting. Generally, companies that list in A-shares before coming to Hong Kong usually have a certain discount. In addition, Contemporary Amperex Technology's stock price has significantly dropped from its highs, so its pricing should be relatively attractive.
Secondly, there are not many battery-related stocks in Hong Kong, which should theoretically provide some support.
However, its fundraising scale is not small, so whether it will surge sharply after listing remains to be seen.
From a purely business perspective, Contemporary Amperex Technology has medium to long-term investment value. After listing in Hong Kong, there is also a chance that Contemporary Amperex Technology will be included in the index constituents or the Hong Kong-Shanghai Stock Connect, which are potential selling points. As for whether it will be included in the Hang Seng Index, I believe it will not be too quick, but it's just a matter of time. Regarding whether it will be included in the MSCI index, I think such a large-scale company has the opportunity; it's just a matter of time.
The main purpose of Contemporary Amperex Technology's listing in Hong Kong is to expand its business, and raising funds is crucial for it to enter other markets. This is another growth point for the business. Contemporary Amperex Technology should be able to maintain the largest market share, which is its advantage.
From the perspective of fundamentals and its own scale, this is undoubtedly an excellent company. However, it is important to note that its growth has not necessarily been stable in the past; in addition, if it can indeed expand into overseas markets, the impact of exchange rates also needs to be considered; finally, attention should be paid to the sales of autos, especially Electric Vehicles expanding into overseas markets in Europe, which will benefit Contemporary Amperex Technology's Battery business in the overseas market.
