Summary of Conference Call on Greater China EV and EV Battery Industry Industry Overview - **Industry**: Greater China Electric Vehicle (EV) and Energy Storage System (ESS) Battery Market - **Key Players**: CATL, CALB, EVE Core Insights 1. **ESS Demand Surge**: - Total ESS order volume in China reached 26GW/69GWh in August, reflecting a year-over-year increase of over 500% [1] - Demand remains strong post "531" rush installation of wind and solar projects, supported by improved returns from independent ESS projects [1] 2. **Future Demand Projections**: - ESS battery demand is expected to remain solid from 2025 to 2030, driven by strong policy support in China and growth in overseas markets [2] - China's NDRC and NEA set a target to increase cumulative installed capacity of new-type energy storage to 180GW by 2027, up from 97GW as of July 2025 [2] 3. **Price Trends**: - ESS battery prices have declined by 45-70% from 2022 to the first half of 2025, but a mild rebound is anticipated due to rising demand and tighter supply [3] - Stable average selling prices (ASP) for EV batteries are expected, with less discounting to auto OEMs amid anti-involution trends [3] 4. **Earnings and Price Objective Adjustments**: - EPS and price objectives for major battery companies have been lifted due to demand growth and supportive policies: - CATL: 2025-27E total battery shipment raised by 3%/3%/2%, EPS increased by 3%/4%/3% [4] - CALB: 2025-27E total battery shipment raised by 9%/14%/17%, EPS forecast increased by 14%/19%/19% [4] - EVE: 2026-27E total battery shipment raised by 7%/6%, EPS forecast increased by 8%/10% [4] 5. **Valuation Changes**: - Price objectives for key companies: - CALB: New PO of 35, up from 24, representing a 27.3% upside [7] - CATL-A: New PO of 467, up from 389, representing a 26.2% upside [7] - EVE: New PO of 85, up from 70, representing an 18.4% upside [7] Additional Insights 1. **Technological Advancements**: - CATL launched the Shenxing Pro battery, a lithium iron phosphate battery designed for the European market, featuring high safety and performance standards [18] - CATL's sodium-ion battery has passed certification and is set for mass production by the end of 2025, offering advantages in energy density and lifecycle costs [19] 2. **Market Share and Production**: - CATL held a 43.2% domestic market share in July, with planned production of 69.5GWh in September, indicating strong demand for ESS batteries [20] 3. **Earnings Revisions**: - Overall earnings for 2025-27E have been revised upwards by 3%/4%/3% due to higher revenue forecasts and improved ASPs for both EV and ESS batteries [21] 4. **Quarterly Earnings Expectations**: - Earnings are expected to rise 34% YoY in 3Q25 and 35% YoY in 4Q25, reflecting strong demand and operational efficiency [24] 5. **Valuation Methodology**: - Valuations for CATL-H were derived from DCF and EV/EBITDA methodologies, with a new fair value of HK$570, up from HK$475 [25][26][27] This summary encapsulates the key points from the conference call regarding the Greater China EV and ESS battery market, highlighting demand trends, pricing dynamics, earnings adjustments, and technological advancements.

Core Points - The Board of Directors of Ensurge Micropower ASA has granted 10,390,000 incentive subscription rights to employees under the 2025 incentive subscription rights plan, with an exercise price of NOK 1.1829 per share [1] - The subscription rights will vest over four years in equal quarterly increments and expire on 8 August 2030 [2] - Ensurge Micropower specializes in ultrathin, flexible, reliable, and safe solid-state lithium microbattery technology, suitable for various applications [2][3] Company Overview - Ensurge has a workforce of forty specialists based in Silicon Valley, focusing on innovative microbattery technology for form-factor-constrained applications such as wearables and IoT devices [3] - The company operates a state-of-the-art manufacturing facility that combines patented process technology with roll-to-roll production methods, aiming to optimize prototyping and small-scale manufacturing [4] - Ensurge is listed on the Norwegian stock exchange and is financed by reputable financial investors, indicating strong strategic investment and transatlantic collaboration [5]

Core Points - The Board of Directors of Ensurge Micropower ASA has granted 10,390,000 incentive subscription rights to employees under the 2025 incentive subscription rights plan, with an exercise price of NOK 1.1829 per share [1] - The subscription rights will vest over four years in equal quarterly increments and will expire on 8 August 2030 [2] - Ensurge Micropower specializes in ultrathin, flexible, reliable, and safe solid-state lithium microbattery technology, suitable for various applications [2][3] - The company operates a state-of-the-art manufacturing facility that utilizes patented process technology and roll-to-roll production methods for efficient scaling [4] - Ensurge is listed on the Norwegian stock exchange and is supported by reputable financial investors, indicating strong strategic investment and collaboration [5]

Core Insights - LiTime is launching its annual "Prime Big Deal Days" sale from September 16 to October 14, offering discounts of up to 60% on lithium power systems and accessories, targeting outdoor enthusiasts and homeowners [1][10] Event Highlights - The sale aims to empower customers' adventures with various promotions, including deposit expansion perks and themed flash sales [2] - VIP members can earn double points during the event, and there are exclusive product specials and rewards for referrals and subscribers [7] Featured Product Deals - The LiTime 12V 100Ah Bluetooth Trolling Motor Lithium Battery is priced at $269.99 (originally $379.99), featuring smart monitoring for real-time battery status [4] - The LiTime 12V 100Ah Group24 Bluetooth Lithium Battery is available for $278.99 (down from $389.99), designed for RV travelers with low-temperature charging protection and Bluetooth monitoring [5] - The LiTime 51.2V 100Ah Bluetooth Lithium Battery for golf carts is priced at $899.99 (previously $959.99), offering improved performance and real-time monitoring capabilities [8] Company Background - LiTime has over 16 years of expertise in LiFePO4 technology and operates globally in the USA, Germany, and Japan, focusing on safe and efficient energy storage solutions [5][9] - The company emphasizes innovation and reliability in its products, aiming to provide energy solutions for various applications, including RVs, boats, and home backup systems [11]

Core Viewpoint - QuantumScape is positioned for significant growth in 2025 as the market begins to recognize its advancements in solid-state lithium-metal battery technology, which could revolutionize the electric vehicle industry [1][12]. Group 1: Stock Performance - QuantumScape's stock price has increased by 160% year to date, driven by enthusiasm for its innovative battery technology [2]. - Despite the substantial rise in stock price, there are questions about whether QuantumScape remains a viable investment opportunity [3]. Group 2: Strategic Partnerships - QuantumScape has expanded its partnership with Volkswagen's battery company, PowerCo, which includes a new agreement that could provide up to $131 million in payments over the next two years contingent on achieving specific milestones [5][6]. - This partnership is crucial for QuantumScape as it marks a significant step towards commercial production of its solid-state batteries, enhancing its production capabilities and market position [7][8]. Group 3: Technological Advancements - QuantumScape's solid-state batteries are touted for their superior performance metrics, including energy density, safety, charging speed, lifespan, and cost-effectiveness, making them a potential game-changer in the EV market [9]. - A recent live demonstration showcased QuantumScape's battery technology in action, with a Ducati motorcycle powered by QSE-5 battery cells, marking a transition from theoretical development to practical application [10][11]. - The demonstrated energy density of QuantumScape's batteries is 844 Wh/L, significantly higher than the current range of 250 Wh/L to 700 Wh/L for conventional lithium-ion batteries [11]. Group 4: Market Potential - The electric vehicle revolution is seen as a transformative force in the automotive industry, with solid-state batteries expected to redefine performance standards for high-end vehicles [12]. - As QuantumScape begins to generate revenue, the future potential remains high, particularly with its partnership with PowerCo, which is still in the early stages [13].

Core Viewpoint - The announcement details the exercise period for warrants issued by Ensurge Micropower ASA, allowing holders to subscribe for new shares at a specified price, emphasizing the importance of timely exercise to avoid lapse [2][3]. Group 1: Warrants Exercise Information - The exercise period for the warrants begins on 26 September 2025 and ends on 10 October 2025 at 16:30 CEST [3]. - Each warrant allows the holder to subscribe for one new share at a subscription price of NOK 1.00 [3]. - Unexercised warrants will lapse without compensation to the holder [3]. Group 2: Exercise Procedure - Warrants can be exercised by submitting a completed exercise form to the manager, Arctic Securities AS, along with payment for the new shares [4]. - The exercise form is available on the websites of both the company and Arctic Securities AS [4]. - Payment for new shares is due immediately upon exercise [4]. Group 3: Company Overview - Ensurge Micropower specializes in ultrathin, flexible, and reliable solid-state lithium microbattery technology [5]. - The company operates from Silicon Valley, employing forty specialists to develop innovative microbattery solutions for various applications, including wearables and IoT devices [6]. - Ensurge's manufacturing facility utilizes patented technology and roll-to-roll production methods, focusing on prototyping and small-scale manufacturing while planning to outsource larger production [7]. Group 4: Financial and Market Position - Ensurge is listed on the Norwegian stock exchange and is supported by reputable financial investors, indicating a strong strategic investment and collaboration [8].

Group 1 - The focus is on long-term investment strategies in U.S. and European equities, emphasizing undervalued growth stocks and high-quality dividend growers [1] - Sustained profitability, characterized by strong margins, stable and expanding free cash flow, and high returns on invested capital, is highlighted as a more reliable driver of returns than valuation alone [1] - The investment approach is informed by a diverse educational background, enhancing both quantitative analysis and market narrative interpretation [1] Group 2 - The portfolio management is conducted publicly on eToro, allowing others to replicate real-time investment decisions [1] - The investment philosophy aims to balance financial security with the freedom to pursue personal interests and work in fulfilling environments [1]

Summary of Key Insights from the China EV & Battery Tour Industry Overview - The report focuses on the **Electric Vehicle (EV)** and **Battery** industry in China, highlighting insights from the 3rd annual China EV and Battery Value Chain Tour held from September 15th to 19th, 2025 [1] Core Insights - **Optimism for Q4 2025**: Industry players are optimistic about EV demand in China for Q4 2025, driven by favorable policies and potential pull-forward demand due to uncertainty over subsidies in 2026. Battery supply chain players expect growth of **20-30% year-over-year**, while OEMs forecast a more conservative **10-15%** [2] - **Long-term Growth Confidence**: The industry remains confident in long-term EV growth, supported by rising EV adoption in Europe and domestic Energy Storage System (ESS) projects. Technological advances are addressing range and charging challenges, with strong demand growth expected in the coming years [3] - **Anti-involution Initiative**: The anti-involution initiative is welcomed by the industry as a framework to reduce low-quality, price-based competition. OEMs are committing to pay suppliers within **60 days**, improving supplier sentiment, although implementation is slow [4] - **ADAS Commoditization**: Advanced Driver Assistance Systems (ADAS) development is advancing, but commoditization is increasing. OEMs lagging in ADAS can adopt third-party solutions, making it less of a differentiator for consumers [5] Financial and Market Insights - **High Utilization Rates**: Battery and component makers report high levels of utilization, indicating potential for margin expansion. If demand remains strong, margins could reach cyclical highs, boosting earnings in upcoming quarters [6] - **Valuation Metrics**: The report includes a valuation table for various companies in the EV and battery sector, indicating performance metrics such as P/E ratios and expected earnings per share for 2024-2026 [7] Investment Implications - **Cautious Outlook for China EV Demand**: While long-term growth is anticipated, a near-term slowdown in China's EV demand is expected due to a high base effect and policy adjustments. EV sales penetration recently reached **55%**, with a forecasted growth of **10-15% year-over-year** in 2026 [8] - **Competitive Dynamics**: Despite government discouragement of aggressive price competition, competitive dynamics will persist. OEMs are focusing on incremental improvements to convert remaining internal combustion engine (ICE) holdouts to EVs [9] - **Stock Ratings**: The report rates various companies, with **BYD** and **Xiaomi** rated as Outperform, while **XPeng**, **Li Auto**, and **NIO** are rated as Market-Perform. For global energy storage, **CATL** and **Tianqi Lithium** are rated Outperform [10] Additional Insights - **Global Battery Comparison**: A comparison table of global battery companies is provided, detailing market capitalization, sales growth, and valuation metrics [12] - **Valuation Comps Table**: A detailed valuation comps table for various automotive companies is included, showcasing market cap, EV, cars sold, and other financial metrics [11] This summary encapsulates the key points from the conference, providing a comprehensive overview of the current state and future outlook of the EV and battery industry in China.

Core Insights - Microvast (MVST) and Sunrun (RUN) are both significant players in the clean energy sector, focusing on electric vehicle batteries and solar energy solutions respectively, targeting the increasing demand for sustainable energy [1] Microvast Overview - Microvast's revenue increased by 9.2% year over year in the June quarter, with a 24% growth projected for 2024, driven by global electrification demand [2] - The company expanded its geographical presence, with the Europe, Middle East, and Africa region contributing 43% of revenues, a 31% increase over the past six months [3] - The APAC region's revenue share grew from 43% to 52%, while the U.S. share increased from 2% to 5% during the same period [3] - Microvast is enhancing its manufacturing capacity in China with a 2GWh expansion in Huzhou, focusing on high-energy nickel-manganese-cobalt cell technology [4] - The partnership with Evoy positions Microvast in the electric boat market, which is expected to grow at a CAGR of 13.5% from 2025 to 2030 [5] Sunrun Overview - Sunrun's revenue for Q2 2025 rose by 9% year over year to $569.3 million, with an 18% increase in revenues from customer agreements [6] - The company has a strong liquidity position with $1 billion in cash compared to $279 million in debt, allowing for continued investments [6] - Sunrun's storage attachment rate reached 70%, up from 54% year-over-year, indicating a shift towards integrated solar and battery solutions [7] - The company is participating in virtual power plants, with over 20,000 customers involved in 16 programs, providing nearly 80 megawatts of capacity [8] - Sunrun's partnership with Tesla Electric aims to enhance its home energy offerings in Texas, providing competitive rates for solar energy [10] Financial Estimates - The Zacks Consensus Estimate for Microvast's 2025 sales is $462.3 million, indicating a 21.7% year-over-year growth, with earnings expected at 19 cents per share [11] - Sunrun's 2025 sales estimate is $2.3 billion, reflecting an 11.2% year-over-year growth, but earnings are projected to decline by 46.6% to 71 cents per share [12] Valuation Comparison - Microvast trades at a forward P/E ratio of 15.66X, which is lower than Sunrun's 25.61X, indicating a more attractive valuation for Microvast [14] Conclusion - Both Microvast and Sunrun exhibit strong growth potential, with Microvast showing a more favorable bottom-line outlook and a lower valuation, making it a more attractive investment option [18]

Core Viewpoint - Our Next Energy (ONE), a promising American battery manufacturer, is downsizing by leasing out over two-thirds of its factory space due to unexpected challenges in the electric vehicle market [1][2]. Group 1: Company Overview - ONE announced a $1.6 billion investment in October 2022 to build the ONE Circle super factory in Michigan, which received $200 million in state grants [1]. - The factory is set to produce lithium iron phosphate (LFP) battery cells starting in 2024, with plans for full production of batteries and battery packs by early 2027, aiming for an 8% share of the U.S. LFP battery design capacity by 2030 [1]. Group 2: Funding and Partnerships - From October 2021 to February 2023, ONE raised $390 million through Series A and B funding rounds, led by notable investors such as Fifth Wall, Franklin Templeton, BMW i Ventures, and Breakthrough Energy Ventures [1]. - To secure downstream market position, ONE signed 10 customer agreements totaling 36 GWh over the next five years following its Series B funding in Q1 2023 [2]. - In June 2023, ONE entered a Joint Development Agreement (JDA) with Canadian cathode material producer Nano ONE to develop LFP cathode active materials [2]. Group 3: Market Challenges - The electric vehicle demand has not met expectations, leading manufacturers to significantly cut investments, which has adversely affected the business model of battery factories [2]. - Policy changes, such as the Trump administration's cancellation of electric vehicle tax credits and fuel emission regulations, have further dampened the electrification progress in the automotive industry [2].