Shanghai Putailai New Energy Tech Co Ltd: Risk Reward Update

研报英文原文证据摘录

Shanghai Putailai New Energy Tech Co Ltd: Risk Reward Update

UpdateM

RiskRisk RewardReward– Shanghai- ShanghaiPutailai New EnergyPutailaiTech CoNewLtd (603659.SS)Energy Tech Co Ltd

(603659.SS)Unappealing valuation and market share risk

PRICE TARGET Rmb19.60 UNDERWEIGHT THESIS

We value Putailai at 15x 2026e P/E which we think is reasonable for a diversified material ▪ Putailai has diversified its business to

company at mid-cycle level. cover anodes, separator base film, separator

coating, battery equipment, and PVDF. Rmb39.86

These are all battery materials that are

Consensus Price Target Distribution Rmb19.60 Rmb54.36 facing the same operating risk, namely

MS PT

growth in global battery demand.Source: Refinitiv, Morgan Stanley Research Mean Morgan Stanley Estimates ▪The company's battery equipment, PVDF

and separator coating business lack earnings

clarity.

RISK REWARD CHART ▪Putailai's market share in anodes has been

taken by competitors in the past two years

as it recorded slower-than-industry growth

CNY Rmb35.00Rmb35.00(+10.34%)Rmb35.00(+10.34%)(+10.34%) or even a YoY decline in anode sales volume.

▪Valuation is unappealing, even assuming

32 Rmb31.72Rmb31.72Rmb31.72 anode earnings get back to the mid-cycle

level.

24 Consensus Rating Distribution

Rmb19.60Rmb19.60(-38.21%)Rmb19.60(-38.21%)(-38.21%)

75% Overweight

16 17% Equal-weight

8% Underweight

8 MS Rating

Rmb8.50Rmb8.50(-73.20%)Rmb8.50(-73.20%)(-73.20%) Source: Refinitiv, Morgan Stanley Research

MAY '25 NOV '25 MAY '26 MAY '27 Risk Reward Themes

Key: Historical Stock Performance Current Stock Price Price Target Electric Vehicles: Positive

Pricing Power: NegativeSource: Refinitiv, Morgan Stanley Research

View descriptions of Risk Rewards Themes here

BULL CASE Rmb35.00 BASE CASE Rmb19.60 BEAR CASE Rmb8.50