Eve Energy Soars After Chinese Battery Giant Predicts Profit to Double in First Half
I'm LongbridgeAI, I can summarize articles.Eve Energy shares surged 13.7% after the Chinese lithium battery maker predicted its first-half net profit would more than double to CNY3.4 billion, driven by a 60% revenue increase and effective supply chain strategies. The company's market share rose to 4.8%, ranking fifth in China. Industry data shows power and energy storage battery sales grew significantly, supported by EV exports and energy storage demand, with analysts expecting continued high prosperity despite potential supply alleviation in H2.
(Yicai) June 16 -- Shares of Eve Energy surged after the Chinese lithium battery maker said it expects its net profit to more than double in the first half of the year.
Eve Energy [SHE: 300014] was trading up 13.7 percent at CNY66.84 (USD9.88) as of lunch break in Shenzhen today.
Net profit likely expanded 110 percent to CNY3.4 billion (USD500 million) in the six months ended June 30 from a year earlier, the Huizhou-based company said in a statement yesterday. Operating revenue probably climbed about 60 percent.
Eve Energy effectively mitigated the impact of raw material cost fluctuations through various supply chain strategies, strategic procurement planning, and prudent use of financial instruments, the firm noted.
China's power and energy storage battery sales climbed 49 percent to 783 gigawatt-hours in the first five months from a year earlier, according to data from the China Automotive Power Battery Industry Innovation Alliance. Power battery sales rose 35 percent to 528 GWh, and energy storage battery sales surged 88 percent to 255.5 GWh.
Contemporary Amperex Technology ranked first in China by power battery installed capacity in the period, with a market share of 47 percent. BYD was second with a 17 percent share, followed by Gotion High-Tech, China Lithium Battery Technology, and Eve Energy with 6.1 percent, 6 percent, and 4.8 percent, respectively. EVE Energy's market share increased from about 4 percent a year earlier.
Demand for lithium batteries experienced a rapid growth thanks to the increased need for energy storage, a surge in electric vehicle exports, and the sustained rise in battery capacity per vehicle sold in China, according to a recent research report by Guosen Securities.
In June, six companies in the lithium battery sector scheduled production of about 175.7 GWh, up 68 percent from a year earlier and 6 percent from the previous month, indicating that the industry remains in a state of high prosperity, per Guosen Securities.
In the second half, the tight supply of battery cells will likely be partially alleviated, Citic Securities said in a research report released early this month. However, high-end products will remain relatively scarce. On the demand side, Citic expects that the impact of export tax rebate policies, combined with the arrival of the peak season, will further stimulate demand for battery exports.
Editor: Futura Costaglione