By Brian Lantier, CFA
NASDAQ: CBAT
READ THE FULL CBAT RESEARCH REPORT
CBAK Energy Technology (NASDAQ: CBAT) has highlighted several new customer relationships and contract wins for its cells that should lead to an improved outlook for the second half of 2026 and 2027.
As we noted in our last update, the company redomiciled its business to the Cayman Islands in June, which reduces some of the reporting requirements for a public company and should lower the cost and operational burden of being public. The company is no longer reporting quarterly results, and as a result, we anticipate that first-half 2026 results will likely be released in the coming weeks.
In August, just after our last update, CBAK reported that it has shipped more than 32 million 32140 cells in the first seven months of 2026, more than double the shipments in the same period of 2025. The company indicated that strong demand from existing customers and added capacity at its Nanjing facility (where capacity rose more than 170% to 178k cells in July) were the primary factors behind this growth.
Also in August, the company announced a $96 million order from a light electric vehicle manufacturer based in India to be used in their two- and three-wheeled vehicles (scooters). CBAK indicated that this represented an expansion of an existing relationship with delivery expected to be completed in 2027.
In October, CBAK announced that it had entered into a supply framework with a European technology company serving the automotive and industrial markets. While total orders under this agreement were reported as “exceeding $4.5 million” through September 2026, the company indicated that it expects this customer to represent more than $30 million in sales in both 2027 and 2028.
Valuation
Our target valuation remains $1.50/share, and the stock has performed admirably since our last update in August (up roughly 40% during that time period), but we believe CBAK continues to offer one of the most compelling valuations in our coverage universe.
The upside to our valuation target and our earnings estimates is significant if CBAK continues to expand as it has in 2026. We will provide a further update on the company and its outlook after the six-month results for the period ending 6/30/2026 are released.
We encourage investors to review our full research reports on CBAK Energy for a complete picture of its business.
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