Summary of Contemporary Amperex Technology Co. Ltd. Conference Call Company Overview - **Company**: Contemporary Amperex Technology Co. Ltd. (CATL) - **Stock Code**: 300750.SZ, 3750.HK - **Industry**: Energy & Chemicals, specifically focusing on electric vehicle (EV) batteries Key Industry Insights - **Electric Heavy-Duty Truck (eHDT) Sales**: - November sales increased by **177% YoY**, with a penetration rate of **36%**, marking a record high [10] - Expected penetration rates for eHDT in China are projected at **25%** for 2025 and **35-40%** for 2026 [10] - **Electric Light-Duty Truck (eLDT) Sales**: - Penetration reached **8.9%** in November, with year-to-date sales rising **80% YoY** [10] - Expected penetration rates for eLDT are projected at **10%** for 2025 and **25%** for 2026 [10] - **Market Share**: - CATL holds approximately **60%** of the electric truck battery market [10] - **Battery Volume Growth**: - The e-truck market is anticipated to increase CATL's battery volume by over **70 GWh** next year, compared to around **500 GWh** in total EV battery shipments for 2025 [10] Financial Performance and Projections - **Stock Rating**: Overweight - **Price Target**: Rmb **490.00**, representing a **28%** upside from the closing price of Rmb **383.42** on December 17, 2025 [7] - **Market Capitalization**: Rmb **1,744,950 million** [7] - **Revenue Projections**: - 2024: Rmb **362,013 million** - 2025: Rmb **410,628 million** - 2026: Rmb **500,706 million** - 2027: Rmb **612,448 million** [7] - **EBITDA Projections**: - 2025: Rmb **79,515 million** - 2026: Rmb **91,066 million** - 2027: Rmb **114,337 million** [7] - **Earnings Per Share (EPS)**: - 2025: Rmb **15.38** - 2026: Rmb **18.97** - 2027: Rmb **23.75** [7] Valuation Methodology - The valuation is based on an **EV/EBITDA** multiple of **17x** for 2026E EBITDA, implying a **25x P/E** for 2026E and a **1x PEG** based on a **25%** five-year earnings CAGR [11] Risks - **Upside Risks**: - Faster-than-expected EV penetration and energy storage system (ESS) applications - Lower geopolitical risks - Better-than-expected margins and market share gains [15] - **Downside Risks**: - Weaker EV penetration and ESS applications - Potential threats from other battery manufacturers - Geopolitical risks leading to supply chain decoupling [15] Conclusion Contemporary Amperex Technology Co. Ltd. is positioned strongly within the electric vehicle battery market, with significant growth expected in both heavy-duty and light-duty electric truck segments. The company's substantial market share and projected revenue growth indicate a favorable investment opportunity, albeit with certain risks that need to be monitored.