Core Insights - The article highlights the top and bottom AH premium rates for various stocks, indicating significant discrepancies between H-shares and A-shares [1][2][3] Group 1: Top AH Premium Rates - Northeast Electric (00042) leads with an AH premium rate of 847.37%, followed by Sinopec Oilfield Service (01033) at 247.50% and Hongye Futures (03678) at 235.59% [1][2] - The top three stocks with the highest deviation values are Shandong Molong (00568) at 49.33%, Northeast Electric (00042) at 23.99%, and Sinopec Oilfield Service (01033) at 20.12% [1][3] Group 2: Bottom AH Premium Rates - The stocks with the lowest AH premium rates include Ningde Times (03750) at -17.62%, China Merchants Bank (03968) at 0.46%, and Heng Rui Medicine (01276) at 0.64% [1][2] - The bottom three stocks with the lowest deviation values are Shanghai Electric (02727) at -23.60%, China National Foreign Trade Transportation (00598) at -16.42%, and First Tractor Company (00038) at -16.03% [1][3] Group 3: Additional Insights - The article provides a detailed ranking of the top ten and bottom ten AH stocks based on premium rates and deviation values, showcasing the volatility and investment potential in the AH market [2][3]

Group 1: Market Overview - The domestic energy storage bidding market is experiencing strong growth, with a new bidding volume of 14.73GW/41.54GWh in September 2025, representing a quarter-on-quarter increase of 37%/8% [1] - The EPC project bidding volume reached a historical high in September, with an increase of 12.9GW/33.58GWh, showing a year-on-year growth of 96%/89% and a quarter-on-quarter growth of 72%/41% [1] - The total domestic energy storage bidding from January to September 2025 reached 102GWh, marking a year-on-year increase of 30% [1] Group 2: Company Performance - BYD has established a complete industrial chain for energy storage, covering various applications and providing reliable energy storage solutions globally [2] - CATL reported a net profit of 49.034 billion yuan for the first three quarters of 2025, a year-on-year increase of 36.20%, with strong demand for products driving revenue growth [2] - CATL's gross margin for energy storage products remains stable, indicating improved profitability amid rapid growth in domestic and international energy storage demand [2] Group 3: Industry Trends - The demand for lithium batteries is expected to exceed 2700GWh next year, with a year-on-year growth rate of over 30%, indicating potential shortages across multiple segments [1] - The AIDC energy storage sector is projected to grow significantly, with major internet and data center operators relying on companies like DoubleDeng for energy storage solutions [3] - The promotion of green electricity combined with energy storage in data centers is expected to create broader development opportunities for companies in the sector [3]

Core Insights - The domestic energy storage bidding market is experiencing strong growth, with new bidding volumes reaching 14.73GW/41.54GWh in September 2025, representing a month-on-month increase of 37%/8% [1] - The EPC project bidding volume has seen a significant year-on-year increase of 96%/89%, with a month-on-month growth of 72%/41%, marking a historical high in September [1] - The demand for lithium batteries is expected to exceed 2700GWh next year, with a year-on-year growth rate of over 30% due to strong market demand and investment [2] Industry Overview - The energy storage sector is witnessing a robust demand driven by the independent storage market and supportive capacity pricing policies, indicating a favorable environment for growth [2] - The bidding volume for energy storage systems has also increased significantly, with a year-on-year growth of 96%/113% in September, despite a month-on-month decline [1] Key Companies - BYD has established a complete industrial chain for energy storage, focusing on R&D, manufacturing, sales, and service, and has provided reliable energy storage solutions for numerous projects globally [3] - CATL reported a net profit of 49.034 billion yuan for the first three quarters of 2025, a year-on-year increase of 36.20%, benefiting from the rapid growth in domestic and international energy storage demand [3] - Contemporary Amperex Technology Co., Ltd. (CATL) has seen a 31.7% increase in revenue for the first half of the fiscal year, with energy storage system sales growing by 109.7% [3] - Double Electronics is a key player in AIDC energy storage, serving major internet and data center operators, and is positioned to benefit from the increasing demand for backup power solutions [4]

Summary of Contemporary Amperex Technology (CATL) Conference Call Company Overview - **Company**: Contemporary Amperex Technology Co., Limited (CATL) - **Industry**: New Energy Vehicle (NEV) Batteries and Energy Storage Systems (ESS) - **Market Position**: Largest NEV battery provider in China since 2017, with a 37.9% global share of EV batteries and a 36.5% share of ESS batteries as of 2024 [9][20] Key Points Earnings and Price Target Revisions - **Price Target Increase**: Raised to HK$640 from HK$495 based on an 11% upward revision for 2026E earnings [1][4] - **Earnings Forecasts**: Revised up by 7% for 2025 and 11% for 2026 due to strong demand in electric heavy-duty trucks (e-HDT) and ESS [2][20] Market Dynamics - **Battery Sales Forecast**: Expected to achieve 638 GWh in 2025 and 790 GWh in 2026E, driven by electrification trends [2][22] - **Domestic EV Market Share**: CATL has lost 3 percentage points in domestic EV market share, now at 43%, due to capacity constraints and competition from smaller battery makers [3][8] Demand Drivers - **ESS Demand**: Strong demand from AI data centers and renewable energy installations is expected to support CATL's growth despite a potential 25% tariff from the US in 2026 [3][20] - **Cost Competitiveness**: Battery applications in e-HDT and ESS are becoming more affordable due to lithium price normalization and battery price deflation since 2023 [1][20] Valuation Metrics - **Current Valuation**: CATL-H is trading at 26x 2026E P/E, below the average of 30x for tech leaders like BYD and TSMC [4][12] - **Future Valuation Potential**: Further upside expected due to global leadership in technology and growth in the European EV market post-Hungarian plant launch in early 2026 [4][12] Financial Highlights - **Revenue Growth**: Projected revenues for 2026E at Rmb510 billion, with net earnings expected to reach Rmb88.2 billion [5][22] - **Profitability Metrics**: Net margin expected to improve to 17.5% by 2026E, with consistent unit profit at Rmb112/kWh [2][22] Risks and Scenarios - **Upside Scenario**: If EV penetration exceeds expectations, total battery sales could reach 850 GWh in 2026E, leading to a valuation of HK$800 per share [26] - **Downside Scenario**: If market conditions weaken, battery sales may only reach 660 GWh, resulting in a downside valuation of HK$350 per share [28] Conclusion - **Investment Rating**: Maintained a Buy rating on CATL-H, with CATL-A seen as more attractive on a valuation basis [1][20] - **Long-term Outlook**: CATL is well-positioned to benefit from the growing electrification of vehicles and the increasing demand for energy storage solutions, with a projected earnings CAGR of 22% from 2024 to 2029E [27][20]

Summary of CATL (300750 CH/3750 HK) Equity Research Report Company Overview - **Company**: CATL (Contemporary Amperex Technology Co., Limited) - **Ticker**: 300750 CH (A-shares), 3750 HK (H-shares) - **Industry**: Battery manufacturing, specifically for electric vehicles (EV) and energy storage systems (ESS) Key Points Stock Performance - CATL's A/H stock prices increased by 36% and 34% over the past three months, outperforming CSI300 (up 12%) and HSCI (up 7%) [3][10] - Strong demand for batteries, particularly from ESS segments and overseas markets, has driven this performance [3] Financial Results - CATL reported a net profit of RMB 18.5 billion for Q3, reflecting a 12% quarter-over-quarter and 41% year-over-year increase, aligning with expectations [3][37] - Revenue estimates for 2025-27 have been raised by 2%-10% due to strong ESS demand and overseas EV battery market share gains [37][40] Capacity Expansion - CATL is expected to exceed 1 TWh of effective capacity by 2026, up from 676 GWh in 2024 [4][22] - Growth drivers include European EV batteries, domestic commercial vehicle (CV) batteries, and ESS batteries, with ESS expected to be the primary growth driver from 2026 onwards [4][27] Earnings Estimates - Net profit estimates for 2025-27 have been increased by 4%-7% due to higher revenue expectations and economies of scale [5][37] - Target prices for A/H shares have been raised to RMB 450 and HKD 594, implying upside potential of approximately 23% and 13%, respectively [5][41] Market Dynamics - Domestic ESS battery demand has grown by 52% year-over-year from June to September, supported by favorable policies [3] - ESS battery exports increased by 33% year-over-year during the same period [3] Risks and Challenges - Potential risks include ASP and margin pressure due to new rebate programs, unfavorable regulatory environments overseas, and execution challenges in international markets [48] - Quality and intellectual property disputes may also pose risks, particularly in global markets [48] Valuation Metrics - CATL's H-shares currently trade at a 32% premium to A-shares, reflecting market confidence in the company's growth prospects [42] - The company is valued using a DCF methodology with a WACC of 6.0% and a perpetual growth rate of 2.5% [40][45] Competitive Position - CATL's share in the overseas EV battery market has grown to 30% as of July 2025, with a 45% share in the European market [34][35] - The company maintains a strong competitive advantage through continuous product innovation and attractive valuations compared to international peers [47] Conclusion - CATL is positioned for robust growth driven by increasing demand for EV and ESS batteries, supported by significant capacity expansion and favorable market conditions. The company maintains a "Buy" rating with revised target prices reflecting positive earnings outlooks and market confidence.

Group 1: Hong Kong Stocks - Yuewen Group (00772) rose over 4% as the company launched four major initiatives to develop its comic-drama ecosystem and actively promote IP commercialization [1] - ASMPT (00522) increased by over 7% after Morgan Stanley reported a recovery in mainstream semiconductor demand and continuous growth in the advanced packaging market, estimating that ASMPT's third-quarter order shipment ratio will remain above 1 [1] - Sands China (01928) rose over 1% as Citigroup expects its EBITDA recovery to continue in Q4 this year and into next year [1] - Jinli Permanent Magnet (06680) saw an increase of over 5% due to significant improvement in profitability and the strategic importance of rare earth resources [1] - AVIC Aircraft (02357) rose over 4% as its Zihuo future aircraft concept model was showcased at the Airshow, with business spanning the aviation industry chain [1] - Minmetals Resources (01208) increased by over 2% with a reported 11% year-on-year growth in total copper production in Q3, and institutions are optimistic about the performance of the Las Bambas mine [1] - Semiconductor stocks led the gains, with Huahong Semiconductor (01347) up over 10%, Shanghai Fudan (01385) up over 4%, SMIC (00981) up over 5%, and Jingmen Semiconductor (02878) up over 6%. Galaxy Securities noted that semiconductor equipment is a critical support sector in the tech war [1] - Horizon Robotics-W (09660) rose over 3% as it gained favor from domestic and international car manufacturers, with HSD already designated by multiple automakers [1][2] Group 2: US Stocks - Tesla (TSLA.US) rose 2.28% with Q3 2025 revenue at $28.095 billion, a 12% year-on-year increase, exceeding analyst expectations [3] - IBM (IBM.US) fell 0.87% as its Q3 hybrid cloud division revenue growth slowed and fell short of expectations [3] - Micron Technology (MU.US) increased by 4.15% as it officially samples the 192GB SOCAMM2 to customers, actively expanding low-power memory applications in AI data centers [3] - NIO (NIO.US) rose 0.73% with over 10,000 deliveries last week, including a record high of over 3,500 for the L90 model [3] - Hesai (HSAI.US) increased by 3.95% after announcing a strategic partnership with Guanghetong to jointly release a multi-modal perception and control solution based on lidar and dual-vision technology [3] - Baidu (BIDU.US) rose 2.95% as it partnered with Swiss Post's subsidiary PostBus to launch autonomous taxi road tests in Switzerland in December [3] - Futu Holdings (FUTU.US) increased by 3.65% after CICC raised its target price by 6% to $230, maintaining an "outperform" rating [3] - Alibaba (BABA.US) rose 3.64% as its Quark AI glasses are set to launch for pre-sale on the 24th [4] - Southwest Airlines (LUV.US) fell 6.25% despite a 1.1% year-on-year revenue increase to $6.95 billion in Q3, exceeding market expectations [4] - Intel (INTC.US) rose 3.36% with Q3 revenue at $13.65 billion, a 2.8% year-on-year increase [5]

Core Viewpoint - The stock prices of several companies in the lithium industry have shown significant increases, indicating positive market sentiment towards these companies [1] Company Performance - Zhongchuan Innovation (03931.HK) has seen a rise of 5.54% - Tianqi Lithium (09696.HK) has increased by 3.69% - Ganfeng Lithium (01772.HK) has grown by 2.70% - CATL (03750.HK) has experienced a rise of 2.62% [1]

Group 1 - The core viewpoint of the news is that Hong Kong lithium mining stocks have collectively risen, with notable increases in several companies' stock prices [1] Group 2 - Tianqi Lithium Industries (096960) saw a rise of 5.85%, with a latest price of 47.080 and a total market capitalization of 77.269 billion, reflecting a year-to-date increase of 95.76% [2] - Zhongxin Innovation (03931) increased by 5.34%, with a latest price of 31.160 and a market cap of 55.225 billion, showing a year-to-date rise of 142.30% [2] - Ganfeng Lithium (01772) rose by 4.57%, with a latest price of 48.020 and a market cap of 98.786 billion, marking a year-to-date increase of 140.87% [2] - Contemporary Amperex Technology (03750) increased by 2.43%, with a latest price of 548.000 and a market cap of 2.5 trillion, reflecting a year-to-date rise of 109.24% [2] - BYD Electronics (00285) saw a rise of 1.86%, with a latest price of 38.260 and a market cap of 86.208 billion, but has a year-to-date decline of 7.65% [2] - Tianneng Power (00819) increased by 1.69%, with a latest price of 8.430 and a market cap of 9.493 billion, showing a year-to-date increase of 4.46% [2] - Aluminum Power (00951) rose by 0.71%, with a latest price of 1.420 and a market cap of 1.568 billion, reflecting a year-to-date decline of 1.18% [2] - BYD Company (01211) saw a slight increase of 0.48%, with a latest price of 104.400 and a market cap of 951.835 billion, marking a year-to-date increase of 19.42% [2]

Group 1 - The company achieved total revenue of 283.1 billion yuan in the first three quarters of 2025, with a year-on-year growth of 9.3% [1] - Net profit attributable to shareholders reached 49 billion yuan, reflecting a year-on-year increase of 36.2% [1] - The company reported a net profit margin of 19.1% in Q3 2025, an increase of 4.1 percentage points year-on-year [1] Group 2 - The company shipped approximately 450 GWh of power and energy storage batteries in the first three quarters of 2025, with Q3 shipments nearing 180 GWh, representing a quarter-on-quarter growth of about 30% [2] - Energy storage batteries accounted for about 20% of total shipments, with a volume of approximately 90 GWh, driven by the rapid growth in power demand from overseas AI data centers [2] - The company launched a series of innovative products in 2025, including the second-generation supercharging battery and sodium-ion batteries, with new products currently accounting for about 60% of total sales [2] Group 3 - The company is projected to achieve revenues of 425.5 billion yuan, 509.3 billion yuan, and 584.9 billion yuan from 2025 to 2027, with corresponding net profits of 68.2 billion yuan, 86.1 billion yuan, and 103.5 billion yuan [3] - A target price of 618 Hong Kong dollars per share has been set, based on a 30x PE ratio for 2026, leading to a target market capitalization of 25.83 billion yuan [3]

Core Insights - The article highlights the current AH premium rates of various stocks, with Northeast Electric (00042), Sinopec Oilfield Service (01033), and Andeli Juice (02218) leading the premium rankings at 864.29%, 271.60%, and 243.99% respectively [1][2] - Conversely, CATL (03750), Hengrui Medicine (01276), and China Merchants Bank (03968) have the lowest AH premium rates, with values of -15.84%, 1.21%, and 1.28% respectively [1][2] AH Premium Rate Rankings - The top three stocks with the highest AH premium rates are: - Northeast Electric (00042): H-share at 0.280 HKD, A-share at 2.25 CNY, premium rate of 864.29%, deviation value of 45.78% [1] - Sinopec Oilfield Service (01033): H-share at 0.810 HKD, A-share at 2.51 CNY, premium rate of 271.60%, deviation value of 47.60% [1] - Andeli Juice (02218): H-share at 16.050 HKD, A-share at 46.09 CNY, premium rate of 243.99%, deviation value of 14.60% [1] - The bottom three stocks with the lowest AH premium rates are: - CATL (03750): H-share at 535.000 HKD, A-share at 375.88 CNY, premium rate of -15.84%, deviation value of -0.86% [1] - Hengrui Medicine (01276): H-share at 76.300 HKD, A-share at 64.47 CNY, premium rate of 1.21%, deviation value of 4.33% [1] - China Merchants Bank (03968): H-share at 49.960 HKD, A-share at 42.24 CNY, premium rate of 1.28%, deviation value of -2.95% [1] Deviation Value Rankings - The stocks with the highest deviation values are: - Sinopec Oilfield Service (01033): premium rate of 271.60%, deviation value of 47.60% [1] - Northeast Electric (00042): premium rate of 864.29%, deviation value of 45.78% [1] - Shandong Molong (00568): premium rate of 122.86%, deviation value of 44.45% [1] - The stocks with the lowest deviation values are: - Tianjin Chuangye Environmental Protection (01065): premium rate of 60.04%, deviation value of -27.29% [2] - Shanghai Electric (02727): premium rate of 141.91%, deviation value of -21.13% [2] - China National Foreign Trade Transportation Group (00598): premium rate of 38.03%, deviation value of -17.35% [2]