Summary of Contemporary Amperex Technology Co. Ltd. Conference Call Company Overview - **Company**: Contemporary Amperex Technology Co. Ltd. (300750.SZ) - **Industry**: China Energy & Chemicals - **Market Cap**: Rmb1,692,773 million - **Current Share Price**: Rmb372.00 (as of December 18, 2025) - **Price Target**: Rmb490.00, indicating a 32% upside potential Key Points on Tariffs and ITC Eligibility - **Tariff Changes**: The US will impose an additional 17.5% tariff on Chinese energy storage system (ESS) battery exports starting in 2026, raising the total tariff to 48.4% [10] - **Cost Implications**: Post-tariff, Chinese battery costs are expected to account for 38% of the US ESS price, which is below the FEOC component exposure limits of 45% and 40% for 2026 and 2027, respectively [10] - **ITC Eligibility**: Utility-scale ESS assembled with Chinese batteries will remain eligible for the 30% Investment Tax Credit (ITC) in the US for 2026, provided there are no further tariff increases in 2027 [10] Financial Projections - **Revenue Growth**: Projected revenues for the next few years are as follows: - 2025: Rmb410,628 million - 2026: Rmb500,706 million - 2027: Rmb612,448 million [7] - **EBITDA Projections**: - 2025: Rmb91,066 million - 2026: Rmb114,337 million - 2027: Rmb141,233 million [7] - **Earnings Per Share (EPS)**: - 2025: Rmb15.38 - 2026: Rmb18.97 - 2027: Rmb23.75 [7] Valuation Methodology - **Valuation Approach**: The company is valued using an EV/EBITDA multiple of 17x for 2026E EBITDA, which corresponds to a P/E ratio of 25x for 2026E [11] Risks Identified - **Upside Risks**: - Faster-than-expected penetration of electric vehicles (EVs) and ESS applications - Lower geopolitical risks - Better-than-expected profit margins - Higher market share gains [13] - **Downside Risks**: - Weaker EV penetration and ESS applications - Competition from other battery manufacturers - Geopolitical risks leading to supply chain decoupling [13] Analyst Ratings - **Stock Rating**: Overweight - **Industry View**: In-Line - **Analyst**: Jack Lu, Kaylee Xu, Yiyi Wang [6] Additional Insights - **Market Dynamics**: The report highlights the ongoing changes in US tariffs and their implications for the Chinese battery market, particularly in the context of the ESS sector [10] - **Investment Considerations**: Investors are advised to consider the potential impacts of geopolitical tensions and market competition on the company's future performance [13] This summary encapsulates the critical insights from the conference call regarding Contemporary Amperex Technology Co. Ltd., focusing on its financial outlook, market conditions, and strategic positioning within the energy storage industry.