{Economic Information Daily, 12th} CATL (03750) is up 3.5% at 508.5 yuan, reclaiming the 500-yuan level. The stock traded about 1.26 million shares, involving 639 million yuan.
Morgan Stanley recently published a research report stating that the market's current focus is overly concentrated on China's passenger vehicle market, which accounts for about one-third of CATL's total EV battery sales. However, the bank believes that the electrification of China's commercial vehicle fleet, the renewed acceleration of EV adoption in Europe, and the inflection point in EV demand in markets beyond the U.S. have already created a substantial revenue exposure that cannot be ignored. It argues that the market has underestimated CATL's cross-cycle resilience.
Morgan Stanley analysts, in their report based on total cost of ownership (TCO) analysis, pointed out that CATL's technological advantages could support a premium as high as 0.24 yuan/Wh, far above the current actual profit premium of 0.09 yuan/Wh, indicating a solid earnings moat. Regarding some investors' concerns that battery net profit may fall to 0.08 yuan/Wh or lower next year, analysts believe such a scenario would lead to accelerated industry consolidation, as many second-tier battery manufacturers are already in negative cash flow. Therefore, the firm views this as a "bottom-fishing scenario" for CATL shares, maintaining an "Overweight" rating on its A-shares with a target price of 500 RMB, and keeping the H-share target at 550 yuan.
Currently, the Hang Seng Index stands at 24,342, up 131 points or 0.5%, with main board turnover exceeding 51.8 billion yuan. The Hang Seng China Enterprises Index is at 8,186, up 38 points or 0.5%. The Hang Seng Tech Index is at 4,184, down 13 points or 0.3%. (vs)
Morgan Stanley recently published a research report stating that the market's current focus is overly concentrated on China's passenger vehicle market, which accounts for about one-third of CATL's total EV battery sales. However, the bank believes that the electrification of China's commercial vehicle fleet, the renewed acceleration of EV adoption in Europe, and the inflection point in EV demand in markets beyond the U.S. have already created a substantial revenue exposure that cannot be ignored. It argues that the market has underestimated CATL's cross-cycle resilience.
Morgan Stanley analysts, in their report based on total cost of ownership (TCO) analysis, pointed out that CATL's technological advantages could support a premium as high as 0.24 yuan/Wh, far above the current actual profit premium of 0.09 yuan/Wh, indicating a solid earnings moat. Regarding some investors' concerns that battery net profit may fall to 0.08 yuan/Wh or lower next year, analysts believe such a scenario would lead to accelerated industry consolidation, as many second-tier battery manufacturers are already in negative cash flow. Therefore, the firm views this as a "bottom-fishing scenario" for CATL shares, maintaining an "Overweight" rating on its A-shares with a target price of 500 RMB, and keeping the H-share target at 550 yuan.
Currently, the Hang Seng Index stands at 24,342, up 131 points or 0.5%, with main board turnover exceeding 51.8 billion yuan. The Hang Seng China Enterprises Index is at 8,186, up 38 points or 0.5%. The Hang Seng Tech Index is at 4,184, down 13 points or 0.3%. (vs)
