EVE Energy (300014): Solid Shipment Growth with Planned Capacity Expansion
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Nomura reiterates a Buy rating on EVE Energy (300014 CH) and raises its target price from Rmb91 to Rmb100, implying 37.3% upside from the current share price of Rmb72.81. The company delivered strong first-quarter 2026 results, with net profit surging 31% year-over-year and 10% quarter-over-quarter to Rmb1.45 billion. Revenue reached Rmb20.68 billion, representing 62% year-over-year growth, fueled by robust increases in both electric vehicle and energy storage battery shipments.
EVE Energy's EV battery shipments grew 41% to 14.3 GWh, while energy storage battery shipments surged 61% to 20.4 GWh. Nomura forecasts total battery shipments will reach 201 GWh in 2026, a 66% year-over-year increase. Since late March, the company has announced four domestic capacity expansion projects totaling 230 GWh of nominal capacity, backed by Rmb23 billion in investment. Two projects (120 GWh) are slated for mid-2027 production, with the remaining two starting in 2028.
Internationally, the Malaysian energy storage facility will ramp up in the second half of 2026, followed by full production in 2027, while the Hungarian plant is expected online by late 2027. Nomura raised its 2026-2027 revenue forecasts by 8-13% but lowered gross margin estimates by 2.4-2.6 percentage points due to rising material costs, leaving overall profit projections largely unchanged. The Rmb100 target price is derived from a sum-of-the-parts valuation, applying 25x 2027F price-to-earnings for the EV and storage battery businesses and 20x for consumer batteries.