Reported EU hybrid import quotas could significantly increase the strategic value of EBRO's Barcelona factory. A proposed 350k annual cap on China-built hybrid vehicles, with EU-assembled cars reportedly exempt, could accelerate Chery's production allocation to Barcelona, improving plant utilisation and profitability. Our sensitivity analysis suggests that c.70k Chery vehicles annually could support a valuation of c.€ 17 per share, compared with our € 14.50 PT. Pending official confirmation of the regulatory framework, we leave our estimates unchanged and reiterate BUY.
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