Goldman Sachs Upgrades Zheng力新能 to Buy with HKD 13 Target, Implying 139% Upside; Kicks Off A-Share IPO

According to Goldman Sachs research published recently, the investment bank upgraded China BAK Battery (Zheng力新能, 03677) to Buy with a 12-month price target of HKD 13.0, implying 139% upside from recent levels. The company trades at 5.2x 2026E EV/EBITDA, a 50%+ discount to industry average of 12.3x, Goldman noted.

Goldman identified Zheng力新能 as the fastest-growing Chinese battery maker in its coverage and one of only three producers maintaining ROIC above WACC (weighted average cost of capital), indicating sustainable value creation amid expansion. The company simultaneously recorded 2025 revenue of RMB 81.01 billion (up 57.9% YoY) with power battery gross margin improving to 18.9% from 15.2%, while targeting capacity expansion to 50.5GWh by end-2026 backed by confirmed orders from major automakers. The company is also initiating A-share IPO through sponsorship by China Guotai Huaxia Securities.