Morgan Stanley Review: Concerns about costs have been overreacted to. The performance of Contemporary Amperex Technology (03750) in the next 15 days will be better than average.

Morgan Stanley's latest research report released on the morning of January 28 pointed out that in the next 15 days, the stock price performance of Contemporary Amperex Technology (03750) listed on the Hong Kong stock market will outperform the industry average. Analyst Jack Lu of Morgan Stanley believes that the recent pullback in the stock price of Contemporary Amperex Technology has made its short-term valuation more attractive, and the market's concerns about profit margin pressure under cost inflation are overreacting. The report emphasizes that Contemporary Amperex Technology has demonstrated mature cost transmission capabilities in previous lithium price uptrends. In the long term, Contemporary Amperex Technology has established a solid barrier against raw material inflation through strategic acquisitions of cobalt, phosphorus, copper, and lithium ore resources by its subsidiaries directly or indirectly. Morgan Stanley expects that with sufficient low-cost inventory in the first quarter of 2026, Contemporary Amperex Technology's profitability will remain stable in the current raw material inflation environment, and believes that the A-share valuation of the company is more attractive.