Equity Research

CATL (300750.SZ): Unlocking value through unit GP expansion; reinstate on A-share and initiate H-share at Buy

We reinstate a rating on CATL-A at Buy with a Rmb323 target price, and initiate on CATL-H at Buy with a HK$343 target price, implying 35%/16% upside respectively (as of 23 June close). We forecast CATL to deliver a 25% EPS CAGR in 2024-2030E, driven by robust volume growth, product mix improvement and unit profit expansion.

24 Jun 2025 | Research | Equity - Eric Shen and others
 

Japan Transportation: Shipping Initiating 3 stocks; prefer MOL (Buy) on resilient cashflow and enhanced shareholder return potential

We initiate coverage on three Japanese shipping companies, Mitsui OSK Lines (MOL), Nippon Yusen KK (NYK) and Kawasaki Kisen (K-Line). While we are cautious on the global containership cycle heading into H2CY2025 as re-stocking demand from the U.S. gradually fades out, our cyclical framework indicates a fairly balanced demand/supply environment in CY2026 (c.f. +2.5% yoy vs. -6.1% in CY2025) once the decline in charter-out rates incentivizes the long-awaited scrapping of old, inefficient vessels from the market.

Also see: Namura Shipbuilding Co. (7014.T): Further demand-supply improvement story not fully priced in amid rising global importance of Japan shipbuilding; initiate at Buy

24 Jun 2025 | Research | Equity - Norihiro Miyazaki and others
 

Yokohama Rubber (5101.T): Capturing a unique growth opportunity in off-highway tires at a low valuation; Initiate at Buy

Yokohama Rubber has a 6% share of the global tire market, with only a 4% share in passenger car tires but a 10% share in the off-highway tire (OHT) market based on FY12/25 guidance. We expect OHT tires to expand and account for 30% of the company's profits (vs. FY12/24 20%) and forecast annual top-line growth of +6% over the next three years, exceeding that of Japanese tire competitors (we forecast +1%). Demand growth for agricultural tires, driven by the acceleration of precision agriculture in developed countries and China, will be a growth driver, in our view.

24 Jun 2025 | Research | Equity - Kota Yuzawa and others