Contemporary Amperex Technology Co Ltd Class A

300750: XSHE (CHN)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	¥883.00	Bpbz	Dxtbnxpr

CATL: Concerns About Geopolitical Risk in US Market Overdone; Shares Remain Undervalued

Vincent Sun

Jun 12, 2024

We reduce our fair value estimate for Contemporary Amperex Technology to CNY 227 per share from CNY 242 to factor in the company's geopolitical risk regarding the United States market. Our fair value estimate implies a forward price/earnings ratio of 20 times. Shares of CATL have declined 8% in the past two trading days after US members of Congress called for the inclusion of CATL to the US import ban list, alleging the company’s supply chains have links to forced labor. At current levels, shares are undervalued, with stock trading in 4-star territory.

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