HyperStrong to procure 200 GWh of batteries from CATL in new deal

BEIJING - Chinese energy storage solutions provider HyperStrong (688411.SH), a prominent player in the Electrical Equipment industry with a market capitalization of approximately $9.6 billion, has signed a strategic cooperation agreement with battery manufacturer CATL to procure at least 200 GWh of battery cells over a three-year period starting January 1, 2026, the companies announced Sunday.

The procurement agreement, which runs through December 31, 2028, is part of a broader ten-year strategic partnership extending to 2035. Under the long-term arrangement, the companies will establish a rolling three-year cooperation framework that will be reviewed and updated annually before December 1.

Beyond battery procurement, the collaboration will explore additional business initiatives including potential energy storage industry investment funds and an integrated platform for project development and management. The companies also plan to pursue collaborative procurement of AC system components.

"This partnership marks another key milestone in HyperStrong's global strategy to build a diversified and multi-dimensional energy ecosystem," according to the press release statement.

HyperStrong, founded in 2011 and listed on the Shanghai Stock Exchange, has deployed over 45 GWh of energy storage systems globally across more than 300 projects. The company has generated approximately $1.54 billion in revenue over the last twelve months and is currently trading at $53.39 per share, slightly above its InvestingPro Fair Value. CATL, listed on both the Shenzhen and Hong Kong stock exchanges (300750.SZ, 03750.HK), has maintained its position as the world's largest EV battery supplier for eight consecutive years through 2024.

The agreement aims to support HyperStrong's expansion of its global energy storage business while strengthening the supply chain coordination between the two companies. With analysts forecasting earnings per share of $0.76 for fiscal year 2025 and an overall financial health score rated as "GREAT" by InvestingPro, HyperStrong appears well-positioned to capitalize on this strategic partnership. Investors seeking deeper insights can access over 15 additional ProTips and comprehensive financial metrics through InvestingPro's advanced analysis tools.

In other recent news, Goldman Sachs has downgraded Beijing HyperStrong Technology from a Buy to a Neutral rating. This change comes despite the firm raising its price target for the company to RMB120.00 from RMB106.00. The decision to downgrade is attributed to margin pressure faced by Beijing HyperStrong. The company's stock has seen a substantial 70% increase in the past two months, significantly outperforming the CSI 300 index. However, Goldman Sachs notes that the current share price suggests a 4% downside relative to their revised target price. These developments reflect the current market sentiment and analyst perspectives surrounding Beijing HyperStrong.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.