A research report indicates that several mainland battery companies will benefit from favorable policy developments, with CATL (03750) as the global leader in electric vehicle and energy storage battery manufacturing expected to see accelerated profit growth of 37% year-on-year this year. The H-share receives a target price of HK$535 with an "Outperform" rating, while the A-share (300750.SZ) gets a target price of RMB 390 with a high conviction outperform rating.

The National Energy Administration's latest mainland energy storage policy shows that 100 gigawatts of new energy storage capacity will be added between 2025 and 2027, equivalent to 300 gigawatt-hours. Authorities estimate this will drive RMB 250 billion in investment over the three-year period.

The policy is considered highly significant as it demonstrates China's continued commitment to advancing energy storage development in future energy initiatives, alleviating market concerns that arose since the cancellation of mandatory energy storage requirements for renewable energy projects earlier this year.

Additionally, CALB (03931), as the world's fourth-largest electric vehicle and energy storage battery manufacturer, is expected to achieve a compound annual growth rate of 76% for earnings between 2025 and 2027, receiving a target price of HK$38 with an outperform rating.

Meanwhile, REPT BATTERO (00666), the world's fifth-largest energy storage battery manufacturer, is viewed as being on a recovery trajectory, with a target price of HK$14 and an "Outperform" rating.