(Yicai) June 16 -- Eve Energy’s stock price surged after the Chinese lithium battery maker said it expects net profit to more than double in the first half of the year.

Eve Energy [SHE: 300014] ended 13.8 percent higher at CNY66.88 (USD9.90) per share in Shenzhen today.

Net profit will likely soar 110 percent to CNY3.4 billion (USD500 million) in the six months ending June 30 from a year earlier, the Huizhou-based company said in a statement yesterday. Operating revenue will probably climb about 60 percent.

Eve Energy said it offset volatility in raw material costs through a diversified supply chain strategy, strategic procurement planning, and the prudent use of financial hedging tools.

China's power and energy storage battery sales climbed 49 percent to 783 gigawatt-hours in the first five months from a year earlier, according to data from the China Automotive Power Battery Industry Innovation Alliance. Power battery sales rose 35 percent to 528 GWh, and energy storage battery sales surged 88 percent to 255.5 GWh.

Contemporary Amperex Technology retained its installed capacity lead in China’s power battery market in the January to May period, with a market share of 47 percent. BYD was second with 17 percent, followed by Gotion High-Tech, China Lithium Battery Technology, and Eve Energy with 6.1 percent, 6 percent, and 4.8 percent, respectively. Eve Energy's share rose from about 4 percent a year ago.

Demand for lithium batteries is robust, supported by strong growth in installations of energy storage systems, rising electric vehicle exports, and increasing battery capacity per vehicle sold in China, according to a recent research report by Guosen Securities.

Six major battery manufacturers are scheduled to produce a combined 175.7 GWh in June, up 68 percent from a year earlier and 6 percent from May, underscoring continued strength across the lithium battery supply chain, Guosen Securities said.

The tight supply of battery cells is expected to ease a little in the second half, although high-end products will likely remain relatively scarce, Citic Securities said in a report released early this month. The brokerage said exports could receive a further boost from export tax rebate policies and the onset of the industry's seasonal peak period.

Editor: Futura Costaglione