Bank of America: Expects that Zimbabwe's tightening of controls will have limited impact on Ningde Times, reaffirms "buy" rating.

Bank of America Securities released a research report stating that the Ministry of Mines in Zimbabwe recently announced the immediate suspension of all exports of raw ore and lithium concentrate, aiming to strengthen supervision and accountability in the mining industry. In the future, only companies with valid mining rights and approved beneficiation plants will have the qualification to export, while agents and third-party traders will be prohibited from exporting. The bank pointed out that data shows that Zimbabwe is expected to account for about 11% of global lithium supply by 2025. It is anticipated that the new measures may cause short-term fluctuations in lithium prices, but the long-term impact on CATL is believed to be limited. The bank explained that miners can negotiate with the government to regain export permits, which should help alleviate supply shortages. It is believed that CATL has the capability to offset most of the upstream cost pressures and shift them to customers, particularly energy storage companies. Considering the steady growth prospects of the energy storage battery business, as well as new battery technologies to help maintain healthy profit margins and expand market share, the bank reiterated its "buy" rating for CATL with a target price of 615 Hong Kong dollars.