KEPCO, CH Airline Updates (-ve), Key Inbounds - KR Auto Parts Init Feedback, CH Auto Feedback, CATL: APAC Industrial & Auto Sector Specialist Sales Commentary Auto & EV - Equipment • Machinery • F&C • AGD

Research evidence excerpt

KEPCO, CH Airline Updates (-ve), Key Inbounds - KR Auto Parts Init Feedback, CH Auto Feedback, CATL: APAC Industrial & Auto Sector Specialist Sales Commentary Auto & EV - Equipment • Machinery • F&C • AGD

reach W2.3tr by 2035 as too far out, making it a good short candidate. There was little

discussion on Autoever due to liquidity, though investors agree on its opportunities and relatively benign competitive

landscape.

• China Auto Feedback - Not finding a bottom yet: Nick came out with a note discussing policy crosswinds between the

EU's defense (potential PHEV tariff hike) and China’s support (government-issued new rural subsidies to boost domestic

demand). Investor feedback on China auto remains negative due to weak macro and consumer sentiment, with 1H June CPCA

auto sales data at -16% YoY. While the EU summit has not yet voted on new car tariffs for Chinese PHEVs, most investors

believe it’s only a matter of time before PHEV tariffs rise, which would likely lead to sales growth deceleration as oil prices

stabilize.

• CATL (300750 +4.5%, 3750 HK +4.7%): CATL gained on news of its lithium mining license approval, while it is

aggressively shifting its business focus to ESS, targeting 50% of sales by 2030. CATL’s mining accounts for ~3% of global

lithium supply, which is expected to help ease recent lithium price rally pressure. Most investors remain constructive on CATL

for its solid growth and earnings visibility, with expansion into ESS capturing further structural growth, while remaining

bearish on KR battery makers (LG Energy Solution and Samsung SDI) due to intensifying competition. However, it’s worth

noting that earnings estimates for LG ES and Samsung SDI for 2Q26 have been revised up, which could result in a short

squeeze into earnings.