External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

Zenergy Battery Technologies / Equity Bottom-Up

<ul><li>Maintain BUY. We revise up Zenergy’s FY25E net profit forecast by 4% to RMB591mn with better product mix than we had expected.</li><li>Such trend would continue in FY26E to benefit Zenergy’s revenue and gross margin. We expect GAC Toyota to surpass Leapmotor (9863 HK, BUY) to be Zenergy’s largest revenue contributor.</li><li>That, along with possible battery price hike which we did not factor in before, has made us raise our FY26E net profit forecast by 4% to RMB1.36bn.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Maintain BUY. We revise up Zenergy’s FY25E net profit forecast by 4% to RMB591mn with better product mix than we had expected.Such trend would continue in FY26E to benefit Zenergy’s revenue and gross margin. We expect GAC Toyota to surpass Leapmotor (9863 HK, BUY) to be Zenergy’s largest revenue contributor.That, along with possible battery price hike which we did not factor in before, has made us raise our FY26E net profit forecast by 4% to RMB1.36bn.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Zenergy (3677 HK) - Higher Earnings Visibility Amid Better Client Mix, Possible Battery Price Hike

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Thematic (Sector/Industry)

<ul>
<li>Vehicle-To-Grid (V2G) technology is rapidly expanding, and China is at the forefront, with the world's largest EV market.  Utilizing large onboard batteries and AI chips, NEVs could soon generate tokens.</li>
<li> China holds 60% of the global ESS market and targets 180GW of new capacity by 2027. NDRC is mandating V2G integration and targets 10+GW of flexible EV storage by 2030.</li>
<li>CATL Chairman Zeng stated in June 2026 that many EVs could be turned into "token factories" by tapping their batteries and AI chips to handle AI model inference workloads.</li>
</ul>


Vehicle-To-Grid (V2G) technology is rapidly expanding, and China is at the forefront, with the world's largest EV market.  Utilizing large onboard batteries and AI chips, NEVs could soon generate tokens.
 China holds 60% of the global ESS market and targets 180GW of new capacity by 2027. NDRC is mandating V2G integration and targets 10+GW of flexible EV storage by 2030.
CATL Chairman Zeng stated in June 2026 that many EVs could be turned into "token factories" by tapping their batteries and AI chips to handle AI model inference workloads.


Cross Asset Strategy

<ul>
<li>The Hong Kong market has bounced on the back of the "risk-on" trade in Asia following the Iran ceasefire.  The energy sector has pulled back hard, and technology has advanced.</li>
<li>Hong Kong and China have seen lackluster ETF flows YTD, but mainland investors remain significant net buyers of HK shares via the southbound connect platform.</li>
<li>
<a href="https://www.smartkarma.com/entities/contemporary-amperex-technology-catl-co-limited" target="_blank" data-smartkarma-citation="entities:45179:1" rel="noopener">Contemporary Amperex Technology (CATL) (3750 HK)</a> reported outstanding earnings for the 4th quarter with improved guidance for 2026.  The company's H-shares trade at a substantial premium to its A-shares.
</li>
</ul>


The Hong Kong market has bounced on the back of the "risk-on" trade in Asia following the Iran ceasefire.  The energy sector has pulled back hard, and technology has advanced.
Hong Kong and China have seen lackluster ETF flows YTD, but mainland investors remain significant net buyers of HK shares via the southbound connect platform.

Contemporary Amperex Technology (CATL) (3750 HK) reported outstanding earnings for the 4th quarter with improved guidance for 2026.  The company's H-shares trade at a substantial premium to its A-shares.



The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (April 2026)

<ul>
<li>China dominates the global battery market and its manufacturers are expanding production rapidly into international markets.  Players like CATL support global automakers with the most advanced battery technology.</li>
<li>Growth of renewable energy has increased demand for Energy Storage Solutions (ESS). ESS stores energy from renewable sources, stabilizes the power grid, and provides power for industrial and commercial buildings. </li>
<li>China's battery companies are benefiting from AI data center (AIDC) storage growth, which has created intense demand for specialized energy storage solutions for this sector.</li>
</ul>


China dominates the global battery market and its manufacturers are expanding production rapidly into international markets.  Players like CATL support global automakers with the most advanced battery technology.
Growth of renewable energy has increased demand for Energy Storage Solutions (ESS). ESS stores energy from renewable sources, stabilizes the power grid, and provides power for industrial and commercial buildings. 
China's battery companies are benefiting from AI data center (AIDC) storage growth, which has created intense demand for specialized energy storage solutions for this sector.


CHINA'S BATTERY SECTOR OUTLOOK: You're Either Positive or Negative!

<ul><li>Both passenger vehicle (PV) retail sales and wholesale volumes in China are likely to hit new highs in 2025E.</li><li>That, along with trade-in subsidy and purchase-tax saving phase-out, could make 2026 interesting and complex.</li><li>Resilient industry growth despite subsidy cuts. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Both passenger vehicle (PV) retail sales and wholesale volumes in China are likely to hit new highs in 2025E.That, along with trade-in subsidy and purchase-tax saving phase-out, could make 2026 interesting and complex.Resilient industry growth despite subsidy cuts. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Auto - 2026 Outlook: Second half of the NEV match

China

Zenergy Battery Technologies Group Co Ltd is a China-based company specializing in the research, development, production, and sales of lithium-ion battery products. These products are primarily for electric vehicles, energy storage systems, and aviation applications, offering integrated battery solutions including cells, modules, and packs. The company was founded in 2019 and is headquartered in Changshu, China.

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Zenergy Battery Technologies (3677 HK)

Zenergy (3677 HK) - Higher Earnings Visibility Amid Better Client Mix, Possible Battery Price Hike

Maintain BUY. We revise up Zenergy’s FY25E net profit forecast by 4% to RMB591mn with better product mix than we had expected.

CMB International

EVs: THE NEW AI TOKEN FACTORIES

Guoxia Tech (2655 HK) has surged 53% over 2 days on high volume. The driver is a continuation of the AI-linked energy storage re-rating that began...

David Mudd

The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (April 2026)

The Hong Kong market has bounced on the back of the "risk-on" trade in Asia following the Iran ceasefire. The energy sector has pulled back hard,...

David Mudd

CHINA'S BATTERY SECTOR OUTLOOK: You're Either Positive or Negative!

CATL is considering an equity offering of up to $5B to accelerate its overseas capacity build-out and battery project deals, especially in energy...

David Mudd

Auto - 2026 Outlook: Second half of the NEV match

Resilient industry growth despite subsidy cuts. We project China’s PV retail sales volume to be largely flat YoY and wholesale volume to rise 2.9%...

CMB International

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