Analysis of EVE Energy's Large Cylindrical Battery Mass Production Progress and Valuation Impact

Based on the above comprehensive data collection and analysis, we now provide you with an in-depth investment research report on the impact of EVE Energy’s large cylindrical battery mass production progress on valuation.

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As China’s first company to achieve mass production and delivery of large cylindrical batteries, EVE Energy is at a key node in the technological iteration of new energy vehicle power batteries. The company has seen a cumulative increase of 52.83% in 2025, with a current market capitalization of approximately 140 billion yuan, a dynamic P/E ratio of 37.91 times, and a price-to-book ratio of 3.55 times [0]. From a technical analysis perspective, the stock price is currently in a range-bound consolidation phase, with a consolidation range of 67.21-70.04 yuan. The MACD indicator shows a bullish alignment but the KDJ indicator shows short-term pressure. The annualized volatility is about 33.6%, and the volume ratio reaches 1.74, indicating an increase in recent trading activity [1].

Large cylindrical batteries are regarded as the core technical route for next-generation electric vehicle power batteries, and their mass production progress directly determines EVE Energy’s competitive position in the industry’s technological transformation. The company has built more than 70GWh of large cylindrical battery capacity. In 2024, its large cylindrical battery shipments ranked second globally and first domestically. On June 30, 2025, it achieved mass production delivery of the large cylindrical battery factory, becoming a benchmark enterprise in the industry to率先实现量产 [2].

EVE Energy has established a significant technological first-mover advantage in the field of large cylindrical batteries. The company released the Open Source Battery 3.0 Series in 2025, with a total of eight flagship products covering full-scenario solution needs. As of the end of the report period, the company’s large cylindrical batteries have been mass-produced and installed in over 60,000 vehicles, and the longest driving distance per vehicle has exceeded 230,000 km, with stable operation [2]. This data fully verifies the reliability and durability of large cylindrical batteries in actual use environments, laying a solid foundation for subsequent large-scale commercialization.

From the perspective of technical parameters, the company’s 46-series ternary large cylindrical battery has significant advantages such as high energy density, high production efficiency, good safety, and stable cell mechanical structure. The company has become the first battery supplier for the next-generation electric models of an international leading automaker, and it is expected that the large cylindrical battery capacity will reach about 20GWh in 2026 [3]. Dr. He Wei revealed at the company’s technical forum that the 300Wh/kg product is expected to be installed in 10,000 vehicles in 2026, and the 320Wh/kg product is being developed for the 1000km+ range needs of high-performance models [4].

The company is actively布局 large cylindrical battery capacity globally, forming a global matrix of three production bases in China, Hungary, and Malaysia. In terms of domestic capacity, the Hubei Jingmen base has achieved large-scale mass production and has the ability to meet the needs of mainstream vehicle manufacturers. In terms of overseas layout, the Malaysia Phase I consumer battery factory was put into production in Q1 2025, the Phase II energy storage factory is expected to start mass production delivery in Q1 2026, and the Hungary factory is planned to be completed and put into production in 2027 [3].

Continuous improvement in capacity utilization is a key factor supporting valuation repair. In the first half of 2025, the company’s capacity utilization rate has回升 to over 80%, mainly benefiting from the exclusive supply volume of Xpeng P7+ and the introduction of new Leapmotor models. With the landing of designated projects such as BMW’s new generation models and FAW Besturn, the company’s power battery segment business will迎来 new performance growth points [5].

Large cylindrical batteries have successfully entered the supply system of many well-known domestic and foreign vehicle manufacturers. In the domestic market, the company has established stable cooperative relationships with new car-making forces such as Xpeng, Leapmotor, and Seres. The Xpeng P7+ model adopts the company’s exclusive supply model, becoming an important engine driving the growth of power battery shipments. In the international market, the company has become a battery supplier for international leading auto brands such as BMW and Volkswagen, supplying their next-generation electric models [3].

In terms of order reserves, the company has locked in a 50GWh cell procurement agreement in advance, and the customer structure continues to optimize. The situation of high concentration of top customers is improving, and customer diversification made positive progress in Q3 2025, creating conditions for profit repair [5].

In the first three quarters of 2025, the company achieved operating income of 45.002 billion yuan, a year-on-year increase of 32.17%. Power battery shipments were 34.59GWh, a year-on-year increase of 66.98%; energy storage battery shipments were 48.41GWh, a year-on-year increase of 35.51% [5]. It is worth noting that the absolute value of energy storage battery shipments has now exceeded that of power batteries, becoming an important cornerstone of revenue growth, reflecting the continuous explosion of demand in the energy storage market.

In the first half of 2025, the company achieved revenue of 28.17 billion yuan, an increase of 30.1% year-on-year, of which energy storage battery shipments were 29GWh and power battery shipments were 21GWh. The gross profit margin of the power battery segment improved significantly to 17.6%, an increase of 6.1 percentage points year-on-year, mainly due to the increase in shipments to overseas key customers and significant improvement in OEE and yield after production line transformation [3].

In Q3 2025, the company achieved net profit attributable to parent of 1.211 billion yuan, an increase of 15.13% year-on-year and 140.16% quarter-on-quarter, showing a strong profit recovery momentum [5]. Brokerage institutions generally believe that 2025 is the year of performance reversal for EVE Energy, and 2026 will be the year of profit elasticity explosion. With the improvement of capacity utilization and the release of scale effects, the company’s power battery business is expected to achieve single-cell profit.

From the perspective of profit quality, the company’s net operating cash flow increased by 131.71% year-on-year, indicating improved operational efficiency and enhanced回款能力. The company’s financial attitude is conservative and stable, and the ratio of depreciation to capital expenditure remains at a high level. As investments gradually mature, there is room for profit release [0].

The company’s financial risk rating is medium risk, with a current ratio of 1.05 and a quick ratio of 0.92, which are in a reasonable range. Although free cash flow is temporarily negative, with the improvement of capacity utilization and the emergence of scale effects, the cash flow situation is expected to continue to improve [0]. The company is promoting the reduction of unit manufacturing costs through full-process lean management, and the scale effect has entered the release cycle.

According to Jinling AI’s DCF valuation model, the company’s current stock price of 68.62 yuan corresponds to the following valuations under three scenarios: the conservative scenario fair value is 724.87 yuan, with a premium of 956.4% over the current price; the neutral scenario fair value is 856.27 yuan, with a premium of 1147.8%; the optimistic scenario fair value is 1254.76 yuan, with a premium of 1728.6% [0].

Key assumptions adopted by the DCF model include: revenue growth rate of 56.2% in the neutral scenario (based on 5-year historical average), EBITDA margin of 11.7%, terminal growth rate of 2.5%, and weighted average cost of capital (WACC) of 11.1%. The company’s beta coefficient is 1.11, indicating that its stock price volatility is slightly higher than the market average [0].

According to 10jqka data, the consensus expectations from brokers for EVE Energy show that the net profit attributable to parent is predicted to be 4.761 billion yuan, 6.814 billion yuan, and 8.630 billion yuan for 2025-2027, corresponding to EPS of 2.33 yuan, 3.33 yuan, and 4.22 yuan respectively. The industry average target price is 61.41 yuan, with a downside of about 10% from the current price, but many institutions have given target prices in the range of 70-104 yuan [6].

Summary of mainstream broker target prices: Huatai Securities gave 73.60 yuan (Nov 4, 2025), Capital Securities gave 79.54 yuan (Oct 29, 2025), CITIC Securities gave 74.77 yuan (Oct 28, 2025), Guotai Junan gave 70.56 yuan (Oct 27, 2025), GF Securities gave 72.60 yuan (Oct 24, 2025) [6].

The impact of large cylindrical battery mass production progress on valuation is mainly reflected in the following four dimensions:

. As the first domestic enterprise to achieve large cylindrical mass production, EVE Energy enjoys a valuation premium brought by technological leadership. According to Frost & Sullivan data, the company’s large cylindrical battery shipments ranked second globally and first domestically in 2024, and this market position provides strong support for valuation [2].

. The utilization rate of large cylindrical production lines has回升 from a low level to over 80%, directly improving the amortization of unit fixed costs and promoting gross profit margin improvement. For every 10 percentage points increase in capacity utilization, it is expected to bring about 1-1.5 percentage points of gross profit margin improvement space [3].

. Designated supply contracts from international leading automakers not only bring order guarantees but also more importantly enhance the company’s brand premium capability. The increase in the proportion of international customers helps improve the overall profit quality of the company and reduce the risk of relying on a single customer [5].

. The company has accumulated more than 70GWh of capacity in the large cylindrical field, and with the growth of shipments, the scale effect will gradually显现. Referring to industry experience, after the capacity reaches 50GWh scale, the unit cost is expected to decrease by 15-20% [3].

: Large cylindrical battery technology is still in a period of rapid iteration. If new technologies such as all-solid-state batteries are commercialized in advance, it may affect the medium and long-term market space of large cylindrical batteries.

: The power battery industry has fierce price competition. If downstream vehicle manufacturers continue to press prices, it may erode the company’s profit space.

: The company still has a high degree of dependence on top customers. If the sales of major customers are lower than expected, it will directly affect the company’s shipment volume and profitability.

: The industry’s overall capacity expansion is fast. If the demand growth rate is lower than expected, it may lead to overcapacity and price wars.

Considering the impact of large cylindrical battery mass production progress on the company’s fundamentals, we believe that EVE Energy’s current valuation mainly reflects the following points:

: Focus on the profit repair of the energy storage business and the continuous improvement of power battery gross profit margin. The company expects energy storage battery shipments of about 80GWh, power battery about 50GWh, and large cylindrical battery about 20GWh in 2025. The profit repair of the energy storage business will be the main catalyst for short-term valuation repair [3].

: Large cylindrical battery capacity ramp-up completed, Hungary factory put into production, and international customer orders volume increase. Brokers generally expect the company to迎来 a profit elasticity explosion in 2026, with net profit expected to grow by more than 40% year-on-year [5].

: Technological leading edge consolidated, global layout completed, and capacity scale effect fully released. The company is expected to become an important participant in the global power battery industry.

From the valuation perspective, the current stock price corresponds to a predicted P/E ratio of about 18-20 times for 2026, which is at the median level of the historical valuation range. Considering the technological leading advantage of large cylindrical batteries, overseas market expansion potential, and continuous improvement in profitability, we believe the company has medium-to-long-term investment value. It is recommended that investors focus on tracking the shipment volume, capacity utilization rate, and gross profit margin improvement of large cylindrical batteries, and seize the opportunity of valuation repair.

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[0] Jinling AI Financial Database - EVE Energy Financial Analysis and DCF Valuation Data (Dec 29, 2025)

[2] EVE Energy 2025 Semi-Annual Report - Huizhou EVE Energy Co., Ltd. (http://static.cninfo.com.cn/finalpage/2025-08-22/1224535979.PDF)

[3] BOCOM International Research Report - EVE Energy (300014 CH): High shipment growth in H1, focus on energy storage profit repair and large cylindrical mass production progress (Aug 22, 2025)

[4] EVE Energy Official Website - Dr. He Wei: Large Cylindrical Battery Technology Advancement and Full-Scenario Landing (https://www.evebattery.com/news-1011)

[5] Time Finance - EVE Energy’s Q3 net profit increased by over 140% quarter-on-quarter, energy storage shipments exceeded power batteries (Oct 24, 2025)

[6] 10jqka Financial Service Network - EVE Energy (300014) Profit Forecast and Target Price (https://basic.10jqka.com.cn/300014/worth.html)