Munro Partners has announced a portfolio adjustment within the Munro Global Growth PMA, selling out of Costco (COST US) and initiating a 3.5% position in CATL (3750 HK).
Rationale for the change:
- Taking profits: Costco has been a strong performer in the portfolio over several years. Munro has elected to lock in gains following its consistent outperformance.
- New opportunity: CATL (Contemporary Amperex Technology Co. Ltd) is a leading global battery manufacturer serving both energy storage and electric vehicle (EV) markets.
- Strong growth outlook:
- Expected revenue growth of ~20% CAGR to 2030.
- Earnings per share (EPS) forecast to grow at a mid-20% CAGR over the same period.
- Valuation: Based on a 25x P/E multiple, which Munro views as reasonable given CATL’s growth potential.
- Aligned management: The founder and leadership team hold significant ownership, ensuring shareholder alignment.
- Strategic fit: CATL sits within Munro’s Climate Area of Interest, reflecting the firm’s focus on innovation and long-term structural growth.
- Market timing: Recent market volatility provided a compelling entry point for the investment.
This shift reflects Munro’s continued commitment to identifying high-quality growth opportunities in industries driving the global energy transition and sustainability.
📄 For full portfolio details, contact your Pacific Private Asset Management representative.