Cheap isn’t an adjective one would typically associate with a stock that’s nearly doubled in a matter of months. But that’s exactly how some investors are describing Contemporary Amperex Technology Co. Ltd.
The Shenzhen-listed stock of the world’s biggest battery maker has surged nearly 75% since this year’s low in early April, adding $110 billion to its market value. That’s owing to optimism that its dominant position in the rapidly expanding energy storage battery system, or ESS space — both in terms of market share and technology — will boost future profits.