Morgan Stanley: AI investment diversification causes Contemporary Amperex Technology (03750) to be re-evaluated, reiterating "overweight" rating.

Morgan Stanley released a research report stating that Contemporary Amperex Technology (03750) has recently seen a strong increase in stock price, mainly benefiting from funds rotating from crowded AI-related stocks to high-quality lagging stocks. The bank believes that earlier this year when market funds were concentrated in AI-related stocks, the market had a lower recognition of the fundamentals of Contemporary Amperex Technology; Recently, investors have been seeking to diversify their AI holdings, reaffirming their "buy" rating on Contemporary Amperex Technology, with an H-share target price of HK$815. Morgan Stanley still believes that the fundamentals of Contemporary Amperex Technology remain strong, and the upcoming second-quarter performance is expected to exceed the company's guidance and the bank's forecast. They are optimistic about the growth prospects next year, including multiple driving factors such as the electrification of diesel vehicles, the super cycle of energy storage systems (ESS), and the cycle of sodium battery products. Currently, they predict that Contemporary Amperex Technology's earnings per share for 2026 to 2028 will be 20.53 yuan, 27.78 yuan, and 34.15 yuan respectively, and revenues are expected to reach 584 billion yuan, 750.4 billion yuan, and 899.2 billion yuan.