Three Actionable Ideas

Research evidence excerpt

Three Actionable Ideas

Idea

August 2, 2026 10:00 PM GMTM

Asia | Asia Pacific Morgan Stanley Asia Limited+ Samuel Lee, CFA

Equity Strategist

Three Actionable Ideas Samuel.Sw.Lee@morganstanley.comHozefa Topiwalla +852 2239-1862

Hozefa.Topiwalla@morganstanley.com +852 2848-6595

CATL – OW | MediaTek – OW | Gulf Development – OW

OW – CATL (300750.SZ): Accelerating capacity expansion targets new lower-end markets but still contributes to incremental

profits. Overall $/Wh margin should not be the focus in this deliberate strategic shift as it is mix driven. New Top Pick.

OW – MediaTek (2454.TW): 3Q26 should mark the bottom of MediaTek’s transition to a Cloud AI ASIC revenue cycle. We see a

strong TPU revenue ramp starting in 4Q26 onward, which we expect will account for more than half of revenue by end-2027.

OW – Gulf Development (GULF.BK): The US shale revolution is coming to Asia. US hyperscalers need more AI power infrastructure

in Asia, especially with pushback domestically. Tiered power pricing has increased locally in Thailand. Deleverage is on the way. New

Top Pick.

Latest closing prices as of July 31, 2026: CATL

Links to reports:

(300750.SZ): Rmb395.30; MediaTek (2454.TW):

Contemporary Amperex Technology Co. Ltd.: New Market Share Strategy (28 Jul 2026)

NT$3,235.00; Gulf Development (GULF.BK):

MediaTek: 2Q26 results preview: Smartphone weak, but Cloud AI taking off; OW (26 Jul 2026)

Bt66.75.

Gulf Development PCL: More Power to AI; Top Pick (28 Jul 2026)

Exhibit 1: Performance summary

As of July 28 Absolute Relative*

No. of ideas 1527

Cumulative Outperformance (bps) 6,502

Avg holding period total return 3.8% 1.7%

Avg 12M total return** 9.3% 5.7% Morgan Stanley does and seeks to do business with

1527 companies covered in Morgan Stanley Research. As a result,