Amprius Technologies (AMPX) FY Conference August 11, 2025 03:45 PM ET Speaker0Hi, everyone. My name is Colin Rusch. I lead, Oppenheimer's sustainable growth and resource optimization research practice here. We're thrilled to have, the Ampreus team here, CEO, Kang Soon, and CFO, Sandra Wallach. We'll go through a presentation with the company and then do a little bit of q and a afterwards.So with that, I'll pass it over to you, Keng, to give us an introduction to the company.Speaker1Morning. Thank you. I'm g ...

Investment Rating - The report initiates CATL-H with an Overweight (OW) rating and a price target (PT) of HK$400, indicating a 25% upside from the previous close. CATL-A is upgraded to OW with a PT of Rmb370 from Not Rated [2][6]. Core Insights - The Chinese EV battery supply chain stocks have rebounded by 8-17% since April, driven by CATL-H's strong performance post-listing and ongoing investment interest in solid-state batteries [2]. - Industry capacity utilization rates have improved, with key players achieving over 80% utilization in the second half of 2024, leading to a new capital expenditure (capex) cycle [5][10]. - Battery prices have stabilized after significant declines, with some players in the energy storage system (ESS) segment experiencing price recovery due to strong demand [5][10]. Summary by Sections Industry Capacity Utilization - The report notes a recovery in industry capacity utilization rates, with improvements seen in 2024, particularly in the second half, driven by better-than-expected demand for EVs and ESS [10][12]. - A significant increase in new orders for battery equipment is anticipated in 2025, with top suppliers expecting over a 45% increase compared to 2024 [5][12]. Battery Prices and Market Dynamics - Battery prices for lithium iron phosphate (LFP) and nickel-cobalt-manganese (NCM) have decreased by 40-60% from their peak in late 2022/early 2023, but have stabilized in 2024 despite a further 20% drop in lithium carbonate prices [5][10]. - Select ESS battery manufacturers have seen a small price recovery, attributed to robust domestic and international demand [5]. Financial Performance and Projections - CATL's shipments for EV and ESS batteries are projected to reach 475 GWh in 2024, up from 390 GWh in 2023, with a strong performance expected in the second half of 2024 [31]. - The report provides a detailed comparison of battery makers' financial results, highlighting CATL's gross profit margin (GPM) improvements and net profit per unit stability [35][40]. Market Share and Competitive Landscape - CATL continues to dominate the Chinese EV battery market, with a significant share in both domestic and overseas markets, while competition remains intense among local players [7][38]. - The report discusses the implications of Chinese OEMs shortening payment terms to suppliers, expressing skepticism about its impact on material suppliers' cash flow [5].