Outlook

CBAK Energy Technology is embarking on an ambitious growth plan to expand its production capacity by more than 10x over the 4.5 years. If the expansion is successful the company will be a major lithium-ion battery supplier.

Demand for lithium-ion batteries remains strong and the launching a large-scale sodium-ion battery production facility offers upside for CBAK investors.

Additional investment in North American and European production of lithium-ion batteries could impact the global market in the long run but we think the near-term impact on CBAK will be limited.

Utilizing estimates that assume capacity expansion targets are met and multiples for other battery manufacturers, we believe CBAT could be worth $1.80 per share but upside exists if new products are successful or if outside investments in subsidiaries materialize.