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Tianneng Power (Mcap; USD 2 billion) is the leading manufacturer of batteries for E-bikes in China. It has a dominating market share in Lead-Acid Batteries (LAMB), powering traditional E-bikes in China and South East Asia, a market which is still growing in both China and SEA due to its customers often being price sensitive. Increasing environmental pressure has in recent years not only led to a shift towards Lithium Ion production, particularly for E-bikes destined for exports, but also to a strong concentration of the formerly high diffused market of LAMB in just a few players. Commanding a high(er) market share, stable margins and stable growth for the remaining few, more sophisticated and research driven producers.

The company is in the process of spinning off its highly cash generative E-bike batteries business (LAMB) onto the Sci-Tech part of the Shanghai Stockmarket where generally higher multiples prevail over those in the Hong Kong market, where the parent company Tianneng Power (819.HK) is listed. Some of the funds raised by this spin-off, the company intends to invest in high energy Lithium batteries and start-stop batteries as well as in its own research facilities which already are commanding a cutting edge profile. The remainder will be used for the upgrading and transformation of Lead Acid batteries.