On September 15, Contemporary Amperex Technology Co., Limited (300750.SZ) demonstrated exceptional performance in the A-share market, becoming the stock with the largest trading volume. At market close, CATL's share price reached 354.7 yuan per share, surging 9.14% for the day with a daily trading volume of 25.587 billion yuan, pushing its total market capitalization to 1.6 trillion yuan in a single day. Simultaneously, CATL's Hong Kong stock also reached a historical high, climbing to 465 Hong Kong dollars per share.

On September 15, CATL representatives declined to comment on stock market movements. Industry analysts indicated that this surge was not unexpected, noting that CATL did not follow the speculative surge when the market previously hyped solid-state batteries. Currently, there is approximately a 70 yuan per share price difference between CATL's A-shares and Hong Kong stocks, with A-shares appearing significantly cheaper.

More crucially, beyond market capital flows, energy storage provides fundamental support for lithium batteries. In the first half of this year, China's energy storage battery shipments increased by 118%, while domestic energy storage bidding from January to August grew by 125%. CITIC Securities research reports indicate signs of unexpected growth in energy storage demand, with energy storage batteries showing price increase trends.

According to data from Xinluo Lithium Battery, the average capacity utilization rate of leading battery companies is expected to reach 94% in September. Wang Wei, Chief Expert at Yunling Energy (Shanghai) Co., Ltd., stated: "The overall trend for batteries remains unclear. Power batteries are currently not significantly affected, and overseas market demand has not substantially changed, maintaining consistently stable and robust momentum. However, the positive outlook for energy storage batteries is certain."

**Both Markets Hit New Highs**

On September 15, CATL's stock performance was remarkable. After opening significantly higher in the morning session, the stock price continued to rise, with intraday gains exceeding 14% at one point, reaching a peak of 371.52 yuan per share, setting a new historical high. At market close, CATL's A-shares closed at 354.7 yuan per share, with a total market capitalization of 1.63 trillion yuan.

Hong Kong stock prices rose synchronously that day, climbing over 10% intraday and reaching a peak of 476.8 Hong Kong dollars, setting a new high since its Hong Kong listing. At close, CATL's Hong Kong stocks closed at 465 Hong Kong dollars per share (approximately 424.69 yuan RMB), with gains of 7.44%.

Recently, market funds have favored the lithium battery sector, with related indices and individual stock prices generally rising, and CATL's stock price showing steady upward momentum. Wind data shows that since the beginning of the year, CATL has risen 37.16% overall. As of September 15, its 60-day gain reached 48.57%, with a one-month increase of 26.79%.

From a price-to-earnings perspective, CATL's current TTM P/E ratio stands at 27.71 times. Within Wind's electrical equipment sector, the median TTM P/E ratio is 25.33 times, placing CATL's valuation at a moderate-to-high level. Among companies with high P/E ratios in the industry, Shanghai Electric (601727.SH) has a P/E ratio of 129.57 times, Gotion High-Tech (002074.SZ) at 63.72 times, and EVE Energy (300014.SZ) at 42.68 times. For companies with lower P/E ratios, NARI Technology (600406.SH) and Sungrow Power Supply (300274.SZ) have P/E ratios of 22.95 times and 20.51 times, respectively.

Industry reaction to CATL's A-share surge has been moderate, with the current A-share and Hong Kong stock price difference approaching 70 yuan per share, providing some support for stock price increases. An industry analyst noted: "From the overall sector performance perspective, CATL's rise is within a reasonable range. When solid-state battery concepts were hyped by the market several weeks ago, CATL's stock price did not show significant volatility. Additionally, considering the Hong Kong stock and A-share price difference, A-share prices are relatively lower."

Last week (September 11), multiple investment banks and securities firms, including Morgan Stanley, released positive news regarding energy storage or CATL. Morgan Stanley indicated in its report that CATL's industry leadership position has not been weakened but has been further strengthened through competition. The bank believes that CATL has achieved breakthroughs in European markets, while smaller competitors face profitability challenges in the critical energy storage sector. Combined with the current popular solid-state battery technology being viewed as short-term speculation, CATL's leading advantage will continue, and its valuation among peers has become significantly attractive, making it the "cheapest in the industry."

**Energy Storage Demand Exceeds Expectations**

Driven by CATL's surge, the Wind New Energy Vehicle Index (884076.WI) and Ning Portfolio (8841447.WI) also joined popular sectors on September 15. Individual stocks including BYD (002594.SZ) and Sungrow Power Supply (300274.SZ) also rose. From main capital flow perspectives, on September 15, CATL, BYD, and Sungrow Power Supply had net main capital inflows of 2.454 billion yuan, 728 million yuan, and 611 million yuan, respectively.

Beyond market sentiment and trading impacts, the rise of various new energy sectors also has certain policy and fundamental support, primarily from energy storage. Last Friday (September 12), the National Development and Reform Commission and National Energy Administration issued the "Special Action Plan for Large-Scale Construction of New Energy Storage (2025-2027)," proposing new energy storage development targets for 2025-2027, expecting to reach over 180 million kilowatts by the end of 2027, driving direct project investment of approximately 250 billion yuan.

As of the end of 2024, national new energy storage installations reached 73.76 million kilowatts, meaning that from 2025-2027, national new installations will exceed 100 million kilowatts. This policy establishes a policy foundation for future energy storage growth and is viewed as a medium-to-long-term positive for the energy storage industry.

Short-term performance expectations also provide benefits beyond medium-to-long-term policy dividends. First, energy storage growth in the first half remained considerable. According to CESA Energy Storage Application Association industry database statistics, in the first half of 2024, global energy storage battery shipments reached 246.4 GWh, a year-on-year increase of 115.2%. Among these, Chinese energy storage batteries led globally, with shipments reaching 232.03 GWh, a year-on-year increase of 118.4%.

Second, current industry trends show slight changes, with energy storage demand showing signs of unexpected growth. CITIC Securities research reports indicate that strong energy storage demand shows at least two signs: first, lithium battery production scheduling shows high growth, with industry chain feedback indicating energy storage batteries show price increase trends of 1-2 cents/Wh to 3-4 cents/Wh; second, domestic energy storage bidding shows high growth, with cumulative new bidding of 218.54 GWh from January to August, a year-on-year increase of 125.37%, including 106.71 GWh for EPC (energy storage engineering procurement construction) and 111.83 GWh for energy storage systems, indicating robust demand.

Enterprise capacity utilization rates have consequently improved. According to Xinluo Lithium Battery statistics, influenced by electric vehicle peak season and energy storage rush installations, lithium battery September production scheduling increased 3%-8% month-on-month, with battery production increasing 7% month-on-month. Industrial chain capacity utilization rates maintain high levels, with September lithium battery leading enterprise average capacity utilization expected at 85%, including battery capacity utilization reaching 94%.

China Energy Storage Network indicates that leading enterprises including CATL and Hithium have orders scheduled through October, with some overseas projects requiring "premium pricing for priority production scheduling."

Zhang Jinhui, Senior Researcher at Xinluo Information, stated: "Some materials and batteries have turned the corner, with the overall industrial chain exceeding expectations. Industry production scheduling for the coming months is essentially full."

From the materials perspective, lithium hexafluorophosphate prices increased somewhat in August. Longzhong Information data shows lithium hexafluorophosphate prices rose from 53,100 yuan/ton (August 1 price) to 56,800 yuan/ton (September 15 price). However, recent prices have been weakly operating. Longzhong Information indicates that since September, upstream raw material lithium carbonate prices have declined, lithium hexafluorophosphate has passively decreased in price, combined with continued downstream demand weakness primarily following just-needed procurement, lithium hexafluorophosphate still has short-term decline expectations.

Returning to energy storage, Document 136, which cancels mandatory energy storage allocation and promotes comprehensive new energy market entry, has improved energy storage economics and plays a key role in industry trend changes. Wang Wei noted: "After Document 136 took effect, some benefits originally belonging to new energy generation have transferred to energy storage, changing energy storage from policy allocation to commercial allocation."

CITIC Securities research reports believe that after comprehensive new energy market entry, electricity price levels may decline and peak-valley price differences may widen, and voluntary energy storage allocation may improve returns through independent allocation.