Goldman Sachs Names CATL and Jiangsu Zenergy Top Picks in China's Battery Sector
Goldman Sachs has identified top investment opportunities in China's battery sector, focusing on companies positioned to benefit from expanding electric vehicle demand and growing battery energy storage system markets.
The investment bank evaluated manufacturers based on scale, technology leadership, cost competitiveness, and growth potential. According to Goldman Sachs' analysis, Contemporary Amperex Technology Co (CATL) ranks as the top pick in China's battery sector.
CATL holds its position as the world's largest battery manufacturer due to leading scale, battery technology, and cost competitiveness. The company's EV battery business provides a solid earnings foundation, backed by expanding demand and a resilient market-share trajectory following recent share recovery.
Goldman Sachs notes that CATL's strategic transition from cells to integrated energy solutions is a key value driver, enabling share consolidation, higher project value capture, recurring service revenue, and stronger margins. The investment bank sets a 12-month price target of HK$947 for H-shares and RMB565 for A-shares using a sum-of-the-parts valuation framework.
Jiangsu Zenergy Battery Technologies Group ranks as the second position, earning an underappreciated high-growth EV battery platform with improving competitive positioning. Despite being founded only in 2019, the company benefits from auto-component expertise inherited from Fuyao Glass, where its founding team originated.