Janus Henderson Global Sustainable Equity Fund on Contemporary Amperex Technology Co. Limited
Thesis
CATL is a leading global producer of EV batteries, and Janus Henderson expects it to benefit from continued electrification of transport and the growth of stationary energy storage. The fund regards battery technologies as important to both energy security and decarbonisation as data-centre electricity consumption expands. Shares fell despite strong first-half financial results, but the managers maintain a constructive longer-term view of solar and battery holdings. They are mindful that competition, margins and possible new taxes could impede that thesis.
“we think CATL is well positioned to benefit from continued growth in EV adoption and energy storage markets.”
Key risks
- Battery margin pressure and growing competition
- A possible lithium battery consumption tax
- Uncertainty about AI infrastructure-related demand
- Investor concerns about EV adoption and energy-storage spending