{Economic Daily News, 15th} Intensifying competition in the battery industry has raised market concerns over downstream companies accelerating "de-CATLization." Today, CATL (03750) share price came under further pressure, hitting an over one-year low of 431 yuan intra-day. Lin Jia-heng, Executive Director and General Manager of Guonong Securities, said on the Economic Daily's live program "Market Open Good Morning" that CATL is currently facing multiple adverse factors, and investors should remain cautious.
As early as a month ago, market rumors indicated that mainstream automakers such as Xiaomi and Li Auto planned to stop placing certain orders with CATL by year-end. At the same time, external political conditions have also changed, with its battery plant construction project in Hungary suspended by local authorities. Lin pointed out that since Hungary is a key hub for CATL's access to the EU market, the suspension of the plant undoubtedly casts a shadow over its future export prospects. Coupled with domestic lithium carbonate prices falling below the 100,000 yuan per ton threshold, negative industry news has come one after another, creating a classic "misfortunes never come singly" situation.
Regarding stock price trends and investment strategy, Lin believes that although CATL's H-shares have significantly retreated from a previous high of around 600 yuan to the 450 yuan level, investors should still not rush to buy. He explained that H-share and A-share (Szse: 300750) shareholders of CATL enjoy identical rights and dividends, but in terms of price, CATL's A-shares are available at around 280 yuan RMB per share, offering a significant premium advantage compared to the H-share price of over 450 yuan. Therefore, if investors remain interested in the company, they should prioritize the relatively reasonably valued A-shares rather than blindly taking positions in the significantly premium H-shares that still face multiple bearish pressures.
CATL's H-shares closed at 448.6 yuan today, down 3.9%, marking the third consecutive day of decline with a cumulative drop of 9.3%, and daily turnover of 38.63 billion yuan. A-shares closed at 278.5 yuan RMB, down 0.6%, with daily turnover of 115.9 billion yuan RMB. Based on closing prices, A-shares are trading at a 27.6% discount to H-shares. (ey)
As early as a month ago, market rumors indicated that mainstream automakers such as Xiaomi and Li Auto planned to stop placing certain orders with CATL by year-end. At the same time, external political conditions have also changed, with its battery plant construction project in Hungary suspended by local authorities. Lin pointed out that since Hungary is a key hub for CATL's access to the EU market, the suspension of the plant undoubtedly casts a shadow over its future export prospects. Coupled with domestic lithium carbonate prices falling below the 100,000 yuan per ton threshold, negative industry news has come one after another, creating a classic "misfortunes never come singly" situation.
Regarding stock price trends and investment strategy, Lin believes that although CATL's H-shares have significantly retreated from a previous high of around 600 yuan to the 450 yuan level, investors should still not rush to buy. He explained that H-share and A-share (Szse: 300750) shareholders of CATL enjoy identical rights and dividends, but in terms of price, CATL's A-shares are available at around 280 yuan RMB per share, offering a significant premium advantage compared to the H-share price of over 450 yuan. Therefore, if investors remain interested in the company, they should prioritize the relatively reasonably valued A-shares rather than blindly taking positions in the significantly premium H-shares that still face multiple bearish pressures.
CATL's H-shares closed at 448.6 yuan today, down 3.9%, marking the third consecutive day of decline with a cumulative drop of 9.3%, and daily turnover of 38.63 billion yuan. A-shares closed at 278.5 yuan RMB, down 0.6%, with daily turnover of 115.9 billion yuan RMB. Based on closing prices, A-shares are trading at a 27.6% discount to H-shares. (ey)
