Summary of Contemporary Amperex Technology Co. Ltd. Conference Call Company Overview - **Company**: Contemporary Amperex Technology Co. Ltd. (CATL) - **Ticker**: 300750.SZ, 3750.HK - **Market Cap**: Rmb1,870,985 million - **Current Share Price**: Rmb409.89 (as of October 9, 2025) - **Price Target**: Rmb490.00 - **52-Week Range**: Rmb424.36 - Rmb209.11 - **Shares Outstanding**: 4,387 million - **Average Daily Trading Value**: Rmb7,385 million Industry Context - **Industry**: China Energy & Chemicals - **Sector**: Battery manufacturing and technology Key Takeaways - **Export Controls**: New regulations from the Ministry of Commerce require permits for exporting batteries with energy density greater than 300Wh/kg. However, CATL's current technology is below this threshold, indicating minimal impact on operations. The company is expected to secure necessary permits for global expansion [5][6][8] - **Regulatory Intent**: The new export controls are perceived as protective measures for China's technological advancements in the battery supply chain rather than restrictions on global market access [5][6] - **Valuation Methodology**: The valuation is based on an EV/EBITDA multiple of 17x for 2026E EBITDA, which translates to a P/E ratio of 25x and a PEG ratio of 1x, reflecting a 25% five-year earnings CAGR [6] Risks and Opportunities - **Upside Risks**: - Faster-than-expected penetration of electric vehicles (EVs) and energy storage systems (ESS) - Lower geopolitical risks - Better-than-expected profit margins - Increased market share [8] - **Downside Risks**: - Slower EV penetration and ESS application - Competition from other battery manufacturers - Geopolitical tensions affecting the battery supply chain [8] Analyst Ratings - **Stock Rating**: Overweight - **Industry View**: In-Line - **Analyst**: Jack Lu from Morgan Stanley [2][22] Additional Insights - **Market Position**: CATL is positioned as a top pick within the industry, indicating strong confidence in its growth potential despite regulatory challenges [2][5] - **Investment Banking Relationship**: Morgan Stanley has a history of providing investment banking services to CATL, which may influence research objectivity [15][17] This summary encapsulates the essential points from the conference call regarding CATL's market position, regulatory environment, and investment outlook.

Flash | 09 Oct 2025 11:56:41 ET │ 13 pages China Battery Materials Proposed Export Restrictions on Battery Chain; A Potential Opportunity CITI'S TAKE On 9th October, The Ministry of Commerce and the Customs announced a proposal of export restrictions on battery, cathode, anode, and corresponding technology & equipment (link). Our read – (1) proposal mainly targets equipment across the board & high-end battery and battery materials, extending from previous export control on cathode and lithium refining techn ...