CBAK Energy Technology is poised to benefit from a sharp uptick in portable energy systems and home energy storage. Despite pricing pressures in the industry, CBAK's strong relationships with key customers and solid safety record enabled has enabled it to retain pricing power which boosted battery margins significantly in the first quarter as raw material continued to fall. As investors begin to focus on the growing and profitable battery business, we believe there is substantial upside for the stock which is now trading at just over 3 times our 2024 EPS estimate.
