Question $1$

The electric vehicle $($EV$)$ market is experiencing rapid growth. In your role as an equity research analyst in Singapore, you've been tasked with covering the EV battery manufacturing industry. After some research, you find that CATL, a Chinese publicly listed company on the Shanghai Stock Exchange, is currently the largest EV battery manufacturer. You have also collected some information about CATL outlined below:

Income Statement $($B$)20222021$

Revenue $328\mathrm{.}59130\mathrm{.}36$

Depreciation $3\mathrm{.}972\mathrm{.}05$

Other operating expenses $287\mathrm{.}80108\mathrm{.}48$

Income before taxes $36\mathrm{.}8219\mathrm{.}82$

Taxes $3\mathrm{.}222\mathrm{.}03$

Net Income $33\mathrm{.}4617\mathrm{.}86$

Dividends $6\mathrm{.}160\mathrm{.}00$

Common Shares Outstanding $2\mathrm{.}442\mathrm{.}32$

Balance Sheet $($B$)20222021$

Current assets $387\mathrm{.}73177\mathrm{.}73$

Net PPE $213\mathrm{.}22129\mathrm{.}93$

Total assets $600\mathrm{.}95307\mathrm{.}67$

Current liabilities $295\mathrm{.}7699\mathrm{.}34$

Long term debt $128\mathrm{.}28115\mathrm{.}70$

Total liabilities $424\mathrm{.}04215\mathrm{.}04$

Shareholder equity $176\mathrm{.}9192\mathrm{.}62$

Total liabilities and equity $600\mathrm{.}95307\mathrm{.}67$

Capital expenditure $18\mathrm{.}4524\mathrm{.}60$

Date Monthly return of CATL Adjusted closing price of SG Straits Times Index Adjusted closing price of Shanghai Composite Index

$1/10/20213198\mathrm{.}173547\mathrm{.}34$

$1/11/20216\mathrm{.}38\%3041\mathrm{.}293563\mathrm{.}89$

$1/12/2021-13\mathrm{.}53\%3123\mathrm{.}683639\mathrm{.}78$

$1/1/20220\mathrm{.}78\%3249\mathrm{.}593361\mathrm{.}44$

$1/2/2022-10\mathrm{.}00\%3242\mathrm{.}243462\mathrm{.}31$

$1/3/2022-3\mathrm{.}95\%3408\mathrm{.}523252\mathrm{.}20$

$1/4/2022-20\mathrm{.}10\%3356\mathrm{.}93047\mathrm{.}06$

$1/5/2022-0\mathrm{.}33\%3232\mathrm{.}493186\mathrm{.}43$

$1/6/202230\mathrm{.}88\%3102\mathrm{.}213398\mathrm{.}62$

$1/7/2022-4\mathrm{.}76\%3211\mathrm{.}563253\mathrm{.}24$

$1/8/2022-5\mathrm{.}03\%3221\mathrm{.}673202\mathrm{.}14$

$1/9/2022-17\mathrm{.}00\%3130\mathrm{.}243024\mathrm{.}39$

$1/10/2022-6\mathrm{.}99\%3093\mathrm{.}112893\mathrm{.}48$

$1/11/20223\mathrm{.}25\%3290\mathrm{.}493151\mathrm{.}34$

$1/12/20222\mathrm{.}19\%3251\mathrm{.}323089\mathrm{.}26$

$1/1/202318\mathrm{.}25\%3365\mathrm{.}673255\mathrm{.}67$

$1/2/2023-13\mathrm{.}18\%3262\mathrm{.}633279\mathrm{.}61$

$1/3/20230\mathrm{.}53\%3258\mathrm{.}93272\mathrm{.}86$

$1/4/20232\mathrm{.}33\%3270\mathrm{.}513323\mathrm{.}27$

$1/5/2023-4\mathrm{.}19\%3158\mathrm{.}83204\mathrm{.}56$

$1/6/20233\mathrm{.}45\%3205\mathrm{.}913202\mathrm{.}06$

$1/7/20233\mathrm{.}92\%3373\mathrm{.}983291\mathrm{.}04$

$1/8/2023-0\mathrm{.}50\%3233\mathrm{.}33119\mathrm{.}88$

$1/9/2023-14\mathrm{.}17\%3217\mathrm{.}413110\mathrm{.}48$

$1/10/2023-8\mathrm{.}58\%3067\mathrm{.}743018\mathrm{.}77$

You can assume that the risk$-$free rate is $2\%$ and market risk premium is $6\mathrm{.}5\%$ in Singapore, and the risk$-$free rate is $3\mathrm{.}5\%$ and market risk premium is $2\%$ in China.

Answer below; find beta based on the question above