Morgan Stanley: Seahow Innovation's cooperation with Ningde confirms strong energy storage demand. Maintain overweight recommendation on Ningde A shares.

Hibor Innovation and Contemporary Amperex Technology (CATL) will cooperate in battery and system product supply, Morgan Stanley said this confirms the strong global demand for energy storage and the shortage of high-end products, indicating CATL's championship position in the energy storage value chain. Analysts such as Jack Lu pointed out in their report that the battery price was not disclosed, but they believe that in a situation of supply shortage, CATL should have received a premium in price/profit ratio, allowing this major deal to be locked in. Other customers such as Tesla and GCL System Integration may also need to ensure their battery supply from CATL. The rating for CATL's A shares was reiterated as overweight, as well as for its suppliers Enneng Power Technology and Time High-Tech. The target price for CATL's A shares is 490 RMB.