UBS: Fast Take: Jiangsu Lopal Tech "LOPAL reported H126 NP of Rmb373 -..."

研报英文原文证据摘录

UBS: Fast Take: Jiangsu Lopal Tech "LOPAL reported H126 NP of Rmb373 -..."

Forecast returns

Forecast price appreciation 41.5%

Forecast dividend yield 0.2%

Forecast stock return 41.8%

Market return assumption 11.1%

Forecast excess return 30.7%

Company Description

Jiangsu Lopal Tech Co Ltd (Lopal) is a China-based company mainly engaged in the R&D,

production and sales of LFP (lithium iron phosphate) cathode materials and automotive

specialty chemicals. The company mainly supplies LFP cathode to domestic battery producers

including CATL, REPT and Sunwoda as well as overseas clients such as LGES. As of 2024,

Lopal operates five production facilities in China (Jiangsu, Tianjin, Sichuan, Hubei and

Shandong) and one in Indonesia. Chairman Mr. Junfeng Shi and his wife Mrs. Xianglan Zhu

are the largest shareholder and actual controller of the company.

Valuation Method and Risk Statement

Our price target for LOPAL is based on an SOTP methodology.

Potential risks inherent in the EV materials sector include, but are not limited to, the volatile

nature of commodity prices and currencies, which may differ materially from expectations.

The sector is also exposed to government EV regulations and global policies on climate

change, each of which could significantly impact company/industry performance.

Company-specific risks include: 1) Execution risk on further overseas capacity addition, 2)

Potential US policy shift that diminishes LOPAL's competitive edge, 3) lower-than-expected

margin in overseas facility caused by unsuccessful cost control, and 4) domestic market share

loss in China from intensified competition or lagging new product R&D.

Jiangsu Lopal Tech 14 July 2026 ab 2