Core Viewpoint - Morgan Stanley's research report indicates that there is over an 80% probability that the stock price of CATL (Contemporary Amperex Technology Co., Limited) will rise in the next 30 days due to recent price corrections making short-term valuations more attractive [1] Group 1: Market Position and Competitiveness - LG Energy's orders from Tesla for energy storage systems (ESS) represent only a small portion of its capacity, with deliveries starting in 2027, allowing CATL to remain the primary supplier in the interim [1] - CATL maintains an advantage in lithium iron phosphate (LFP) technology and will continue to drive technological iterations, while sodium-ion and solid-state battery technologies could further solidify its market share [1] Group 2: Strategic Partnerships and Future Outlook - In the U.S., CATL plans to collaborate with Tesla and Ford through technology licensing to capture market share [1] - Given these factors, Morgan Stanley believes it is an opportune time to buy CATL's A-shares, assigning an "overweight" rating with a target price of 425 yuan [1]

Group 1 - China Biopharmaceutical (1177.HK) saw a rise of over 3% after announcing a successful licensing agreement with Merck for its PD-1/VEGF dual antibody, expecting a $300 million milestone payment soon [1] - CSPC Pharmaceutical Group (1093.HK) increased by over 5% following the announcement of an exclusive licensing agreement with Madrigal Pharmaceuticals for the global development of its GLP-1 receptor agonist SYH2086 [1] - Youzan (8083.HK) surged over 7% as it projected a revenue of approximately 709 to 719 million RMB for the first half of the year, a year-on-year increase of about 3.3% to 4.8%, and a net profit of 68 to 74 million RMB, marking a turnaround from a loss last year [1] Group 2 - Xingsheng International (6058.HK) rose nearly 18% after the bank announced its commitment to embrace technological transformation and explore stablecoins and AI initiatives [2] - New Oriental Education (9901.HK) fell nearly 4% after reporting a 9.4% year-on-year increase in net revenue to $1.243 billion for the fourth quarter of fiscal year 2025, but a 73.7% drop in net profit [2] - Kingdee International (0268.HK) saw a rise of over 7% as it announced a board meeting to review its interim results and potential dividend distribution [2] Group 3 - Macau gaming stocks rose, with MGM China (2282.HK) up over 4% after Macquarie raised its forecast for Macau's total gaming revenue for 2025 by 5% to 235.7 billion RMB, indicating a year-on-year growth of 4% [3] - Gold stocks in Hong Kong continued to decline, with Tongguan Gold (0340.HK) dropping over 9% for six consecutive days, as spot gold prices fell below $3,270 per ounce [4] - Kangfang Biopharma (9926.HK) rose nearly 5% after announcing the completion of the first patient dosing in a pivotal clinical trial for its PD-1/VEGF dual-specific antibody [4] Group 4 - Weishi Jiajie (0856.HK) increased by over 3% as a report indicated that its Southeast Asia business is expected to see a significant revenue increase of 74% in 2024, with net profit contributing about 51% [5] Group 5 - Meta (META.US) exceeded revenue expectations and provided strong guidance for the current quarter, leading to an after-hours increase of over 11% [6] - Microsoft (MSFT.US) reported an 18% year-on-year growth in revenue, driven by its cloud business, with Azure revenue up 34% for the full year, resulting in an after-hours increase of over 8% [6] - Wingstop (WING.US) surged by 26.85% after reporting adjusted earnings per share of $1.00 for the second quarter, exceeding analyst expectations [6] Group 6 - Several biopharmaceutical stocks surged, with Replimune (REPL.US) up 101.33% following news of regulatory changes at the FDA that may ease pressure on gene therapy and vaccine companies [7] - Marvell Technology (MRVL.US) rose 7.07% after announcing a partnership with Rebellions to provide AI systems for regional projects in Asia-Pacific and the Middle East [7] - Palo Alto Networks (PANW.US) fell 5.58% after agreeing to acquire CyberArk Software for approximately $25 billion [8]

Group 1 - The core viewpoint of the article highlights a decline in the stock prices of several electric vehicle companies, including NIO, Xpeng, Li Auto, and Tesla, amidst news of Tesla's significant procurement deal with LG Energy [2] - NIO's stock fell over 3%, Xpeng's over 2%, Li Auto's over 3.5%, and Tesla's over 1% as of the report [2] - Tesla has signed a $4.3 billion agreement with LG Energy to procure lithium iron phosphate (LFP) batteries, marking the second deal Tesla has made in South Korea this month [2] Group 2 - The batteries procured from LG Energy will be produced at the company's U.S. factory, but they are not intended for use in vehicles [2] - The ultimate purpose of these batteries will be for energy storage systems, indicating a strategic shift in Tesla's supply chain focus [2]

Core Viewpoint - The news highlights a decline in the stock prices of several electric vehicle manufacturers, including NIO, Xpeng, Li Auto, and Tesla, amidst a significant procurement agreement between Tesla and LG Energy Solutions for lithium iron phosphate (LFP) batteries valued at $4.3 billion [1] Group 1: Stock Performance - NIO's stock fell over 3% [1] - Xpeng's stock decreased by more than 2% [1] - Li Auto's stock dropped over 3.5% [1] - Tesla's stock declined by more than 1% [1] Group 2: Tesla and LG Energy Solutions Agreement - Tesla signed a $4.3 billion agreement with LG Energy Solutions to procure LFP batteries [1] - This marks the second transaction Tesla has made in South Korea this month [1] - The batteries will be produced at LG Energy Solutions' factory in the United States, but they will not be used in vehicles; instead, they are intended for energy storage systems [1]

Group 1 - Tesla has signed a $4.3 billion agreement with LG Energy Solution to procure lithium iron phosphate (LFP) batteries, which will be produced at LG's U.S. factory for energy storage systems, not for vehicles [1] - This marks Tesla's second deal with a South Korean manufacturer this month, following a $16.5 billion agreement with Samsung Electronics for AI semiconductors [1] - LG Energy is looking to expand its energy storage business in the U.S. and plans to increase LFP battery production at its joint venture plant with General Motors in Tennessee [1] Group 2 - LG Energy has a contract worth 5.9 trillion Korean won to supply LFP batteries overseas starting from August 2027 for three years, although the customer and product details were not disclosed [2] - The agreement includes an option to extend the supply period by up to seven years and increase supply volume through negotiations with the customer [2] - LG Energy is competing in the LFP battery market, which is cheaper and offers better energy density in cold climates, to better compete with Chinese rivals [2]

Group 1 - The race for innovation in solid-state battery technology for electric vehicles is intensifying, with major automakers and battery manufacturers making recent announcements that reignite hope for commercialization in the next 5 to 10 years [1] - Solid-state batteries are expected to have significantly higher energy density compared to traditional lithium-ion batteries, which could drive the next generation of electric vehicles [2] - The introduction of semi-solid state batteries by companies like NIO and Zhiji in the latter half of last year has catalyzed the industry, with many players aiming for large-scale production by the end of this decade [2] Group 2 - Solid-state batteries utilize solid electrolytes made from materials like ceramics, offering potential benefits such as enhanced safety, lower costs, and improved performance, along with reduced supply chain risks [3] - Critics highlight challenges such as high production costs, battery swelling during charging, and performance degradation after multiple charges, leading some manufacturers to prefer semi-solid state batteries [3] Group 3 - Key players in the solid-state battery race include Volkswagen, Mercedes-Benz, Stellantis, BYD, Nissan, and Toyota, with BYD and CATL seen as having a better chance of achieving commercial production due to their extensive battery manufacturing experience [4] - Western automakers like BMW and Mercedes are considered to be in a leading position due to significant investments in R&D and partnerships aimed at mitigating risks [4] - Nissan aims to achieve solid-state battery mass production by 2028, with the CEO emphasizing the importance of market readiness before making substantial investments [4] Group 4 - Negative sentiment in the industry has been exacerbated by delays and technical issues faced by leading Western companies like Quantumscape, which has pushed back product launch timelines [6] - Recent advancements in existing technologies, such as CATL's lithium iron phosphate battery that can increase range by 520 kilometers with just a 5-minute charge, have raised concerns about the market viability of solid-state batteries [6] - As existing technologies improve and specifications become more similar, the high costs of solid-state batteries may become less justifiable, potentially diminishing their market value proposition [6]

Core Viewpoint - The article discusses the recent performance and market dynamics of CATL (Contemporary Amperex Technology Co., Limited) following its listing on the Hong Kong stock exchange, highlighting its stock price increase and potential for value reassessment in the context of domestic and international battery markets [1][2]. Domestic Battery Market - The overall demand and supply in the domestic battery market remain stable, with a sales/production ratio of over 70%. The introduction of a new tax on new energy vehicle purchases in 2025 is expected to support terminal demand [3]. - CATL's market share in China is declining, primarily due to the increasing market share of LFP (Lithium Iron Phosphate) batteries, which are favored for their cost-effectiveness amid intense competition [5]. - Despite the decline in market share, CATL's position is expected to stabilize in 2025 due to policy controls on price wars and a balanced supply-demand relationship [5]. International Battery Market - In Europe, CATL is anticipated to see significant growth, with the market share increasing from 35% in 2024 to 44% in early 2025, driven by rising demand for electric vehicles and favorable regulatory changes [10][13]. - The penetration rate of new energy vehicles in Europe is projected to rise, with expectations of reaching 28%-30% by 2025, which will further boost CATL's sales [13]. - CATL is expanding its manufacturing presence in Europe to enhance competitiveness and meet the growing demand for electric vehicles, with expected contributions of 40-50 GWh in battery output [14][15]. Valuation Perspective - CATL's valuation is influenced by its stable domestic market position and potential growth in Europe, with a projected P/E ratio of around 22 based on expected sales volumes [16]. - The company is seen as a core asset in the Hong Kong market due to its scarcity and the anticipated influx of passive investment following its inclusion in major indices [18][20].

Core Viewpoint - The global electric vehicle (EV) market is entering a "China-dominated era," characterized by a fundamental restructuring of the industry landscape, with Chinese brands outperforming traditional giants in sales, technological innovation, and cost control [4][5]. Market Performance - In April 2025, global sales of pure electric vehicles reached 1.0797 million units, a year-on-year increase of 38%, with China contributing over 60% of the sales and experiencing a growth rate of 51% [1][3]. - China's EV sales reached 662,500 units, with a penetration rate increasing from 22.4% to 30.2% year-on-year [7]. - The European market saw sales of 214,300 units, a 30% increase, with a penetration rate of 19.9% [7]. - The U.S. market, however, showed a decline, with sales of 95,400 units, down 4%, and a penetration rate dropping from 7.4% to 6.5% [7]. Brand Rankings - BYD led the global EV manufacturers with sales of 181,009 units and a market share of 17%, marking a 40% year-on-year increase [8][12]. - Geely followed with sales of 100,764 units and a market share of 9%, significantly up from 39,400 units last year [9][12]. - General Motors ranked third with sales of 96,014 units [10][12]. - Tesla faced challenges, with sales of 84,780 units, a 17% decline, and a market share dropping from 10.7% to 7.9% [11][12]. Battery Technology - In April, global battery deployment reached 66,800 MWh, a 32% year-on-year increase [17]. - The market share of lithium iron phosphate (LFP) batteries rose from 35% to 44%, while the share of nickel-cobalt-manganese (NCM) batteries fell from 54% to 47%, indicating a strategic advantage for Chinese manufacturers in cost control and technology choices [19].

Core Insights - The global electric vehicle (EV) market is experiencing a significant shift towards dominance by Chinese manufacturers, with a 38% year-on-year increase in sales to 1.079 million units in April 2025, driven largely by a 51% increase in the Chinese market [1][8] - Morgan Stanley's report highlights that BYD and Geely are leading in sales, while Tesla's market share has declined from 10.7% to 7.9% [6][11] Market Performance - In April 2025, China accounted for 66.25 million units sold, a 51% increase, with a market penetration rate rising from 22.4% to 30.2% [8] - Europe saw a 30% increase in sales to 21.43 million units, achieving a penetration rate of 19.9% [8] - The U.S. market showed a decline, with sales dropping 4% to 9.54 million units and a penetration rate falling from 7.4% to 6.5% [8] Manufacturer Rankings - BYD led the global EV sales with 181,009 units and a 17% market share, followed by Geely with 100,764 units and a 9% share [11][12] - General Motors ranked third with 96,014 units, while Tesla's sales fell to 84,780 units, marking a 17% decline [11][12] - Tesla's market share in the U.S. also decreased from 46.0% to 41.0% [12] Battery Technology - The global battery deployment reached 6.68 million MWh in April, a 32% increase year-on-year [14] - The share of lithium iron phosphate (LFP) batteries rose from 35% to 44%, while nickel manganese cobalt (NMC) batteries decreased from 54% to 47%, indicating a strategic advantage for Chinese manufacturers in cost control and technology selection [16]