CATL's market value has increased by 110 billion US dollars in just a few months, but it is still considered "cheap" in the eyes of investors. JPMorgan Chase referred to it as "the cheapest battery stock in the world."

The A-shares of CATL, the world's largest battery manufacturer, have surged nearly 75% from their year-low reached in early April, with a market value increase of $110 billion. This is mainly attributed to market optimism that its leading position in the rapidly expanding energy storage sector, both in terms of market share and technology, will drive future profit growth. Despite this, CATL's forward 12-month P/E ratio is around 22 times, but in Bloomberg industry research on global indexes in this sector, CATL's valuation is the lowest among pure battery manufacturers. For companies like BNP Paribas Asset Management Asia Ltd. and JPMorgan, this means that the stock has not fully reflected its growth potential. "AI is driving global electricity demand, and energy storage systems are the fastest way to expand capacity," said Roxy Wong, Senior Portfolio Manager at BNP Paribas Asset Management Asia Ltd. "Energy storage systems are highly dependent on lithium iron phosphate batteries, and CATL excels in this field, with a clear competitive advantage." "CATL is cheaper than its peers, and many of its peers have much lower profit margins." JPMorgan recently raised CATL's target price by approximately 26% to HK$480 per share, calling it the "cheapest battery stock in the world." JPMorgan analysts also upgraded CATL's H-shares to overweight.