Jiangsu Cnano Technology Co Ltd: Risk Reward Update

Research evidence excerpt

Jiangsu Cnano Technology Co Ltd: Risk Reward Update

UpdateM

RiskRisk RewardReward– Jiangsu- CnanoJiangsuTechnologyCnanoCo LtdTechnology(688116.SS) Co Ltd (688116.SS)

Carbon nanotube leader but earnings delivery below expectation

PRICE TARGET Rmb34.00 UNDERWEIGHT THESIS

We value the company using 28x 2026e P/E, slightly below the 5-year average of ~30x P/E ▪We think Cnano can continue to lead in

to reflect potentially continuous earnings delivery issue. technology, product development, and

market share, leveraging its R&D capabilities

and customer profile.

RISK REWARD CHART ▪The company's single-walled carbon

nanotube products should help it capture

growth amid battery technology evolution.

CNY ▪However, the product mix improvement is

slower than expected amid industry

Rmb55.00Rmb55.00(+40.02%)Rmb55.00(+40.02%)(+40.02%) headwinds. ASP performance was below

60 expectation.

▪More importantly, we think valuation is

45 stretched. Expectations for single-walled

Rmb39.28Rmb39.28Rmb39.28 carbon nanotubes - for which demand is

difficult to quantify accurately - are too high,

Rmb34.00Rmb34.00(-13.44%)Rmb34.00(-13.44%)(-13.44%) in our view. 30

15 Rmb23.00Rmb23.00(-41.45%)Rmb23.00(-41.45%)(-41.45%) Consensus Rating Distribution

100%Overweight

0% Equal-weight

JUN '25 DEC '25 JUN '26 JUN '27 0% Underweight

MS Rating

Key: Historical Stock Performance Current Stock Price Price Target

Source: Refinitiv, Morgan Stanley Research

Risk Reward Themes

Electric Vehicles: Positive

Pricing Power: Negative

View descriptions of Risk Rewards Themes here

BULL CASE Rmb55.00 BASE CASE Rmb34.00 BEAR CASE Rmb23.00

Rapid penetration of single-walled product Gradual penetration of single-walled No single-walled product sales in 2025

product