In "The Big Banks," Citigroup raises the target price for CATL to 685 yuan, with profit margins continuing to expand

The report from Citibank indicates that CATL (03750.HK) has achieved impressive quarterly performance, with a year-on-year profit growth of 41% and a quarter-on-quarter growth of 12% in the third quarter of 2025, in line with the market's revised expectations. The gross profit margin expanded by 0.2 percentage points quarter-on-quarter to 25.8%, alleviating market concerns about the pressure on profit margins due to soaring lithium costs in that quarter.

Citibank raised the target price for CATL's H shares from HKD 670 to HKD 685; the target price for CATL's A shares was increased from RMB 490 to RMB 500, and it reiterated its "outperform" rating for CATL's H shares, while the rating for A shares is "highly confident outperform."