New agreement Ceres has signed a manufacturing licence agreement with Weichai Power, the global OEM, developer and 20% shareholder, headquartered in China. Weichai intends to establish a manufacturing facility to produce cells and stacks for the stationary power markets supported by key components supplied from Ceres, targeting power for AI data centres, commercial buildings and industrial applications. SOFC systems will complement Weichai’s existing products for power gen, including gas engines. This supersedes existing agreements with Weichai and, including Doosan, Delta and Denso, expands Ceres’ manufacturing partner portfolio to four. No change to our estimates We had already reflected the delay from this year to next and our FY26E estimates assume an additional licence agreement is signed. This is consistent with prior guidance of one per year. Revenue & cash generation (fees, milestones & royalties) are consistent with previous manufacturing licensing agreements. Ceres now has contracted revenues of £45m for next year and 14 months to sign the next agreement to meet our forecast. Valuation / our view The shares now trade on a CY26E EV/Sales of 8.3x, which compares to Bloom Energy (N/R) on 13.1x consensus. Ceres’ high efficiency SOFC, that can be deployed quickly where the power is needed, represents a multi-billion market opportunity (circa 20-25GW by 2030 – pls see our note on this). Big spark spreads in EU, cheap gas in the US and other energy-constrained countries such as Taiwan where energy is imported make SOFC very attractive. Recent removal of the Bosch overhang and market realisation that SOFC can help solve AI data centre power shortages and grid reinforcement has been driving strong share price performance recently. Our TP is under review. Management call There is an Investor Teams call at 8.30am – pls contact us for the link.