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<Research>Citi Raises CATL (03750.HK) TP to HKD888, Expects Profit to Reach RMB100B This Yr
Recommend 17 Positive 20 Negative 7 |
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After CATL (03750.HK) announced its 1Q26 results, Citi updated its financial model and raised its earnings forecasts for FY2026-28 by 9%/ 9%/ 7% to RMB103 billion/ RMB126 billion/ RMB149 billion, respectively. Although unit gross profit forecasts were lowered, the broker raised its battery sales projections and expected battery production and sales to reach milestones of 1.2 terawatt-hours (TWh) and 1.0 TWh, respectively, in FY2026, representing YoY growth of 61% and 54%. Despite a high base, the broker expected CATL’s battery production and shipments to remain strong in 2H26, with demand for ESS serving as a key highlight. Citi also noted that lithium carbonate prices above RMB200,000 per tonne will not destroy demand in the short term; instead, higher lithium prices would signal resilient demand. Citi expected the company’s net profit in 2Q26E to reach RMB24.3 billion, corresponding to battery sales of 260 gigawatt-hours, representing YoY growth of 77% and QoQ growth of 29%, respectively. Citi raised the A-share TP of CONTEMPORARY AMPEREX (300750.SZ) from RMB576 to RMB603. Meanwhile, based on a historical H/A share premium of 28% (reflecting its scarcity as a global battery leader in offshore markets), the broker lifted the H-share TP from HKD621 to HKD888 and maintained a Buy rating, continuing to list it as the sector’s top pick. Auto-translated by AI This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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