UBS: CATL's quarterly results slightly exceeded expectations, and the market is expected to moderately raise earnings forecasts
UBS released a research report stating that CATL's third-quarter performance slightly exceeded expectations, with net profit rising 12% quarter-on-quarter to RMB 18.5 billion, an increase of 41% compared to the same period last year. The net profit for the first nine months was RMB 49 billion, which is 73% of the full-year market expectation of RMB 67 billion, indicating that the fourth-quarter net profit expectation is only RMB 18 billion. Given that the fourth quarter is typically better than the third quarter due to seasonal factors, the market is expected to moderately adjust its earnings forecast upwards. The bank also noted that since CATL's stock price has surpassed the target price, it will be under review. The bank previously set a target price of HKD 495 and a "buy" rating for the stock. The bank also quoted management as saying that demand for electric vehicle and energy storage system batteries is strong, and the momentum is expected to continue into next year. Key demand drivers include the increase in battery installation per vehicle, rapid growth in electric heavy truck sales, and improved utilization and profitability of domestic and international energy storage projects. The company also stated that the first phase of the Hungarian factory is currently testing equipment and reaffirmed its goal to complete construction by the end of the year
According to the Zhitong Finance APP, UBS released a research report stating that CATL (03750) slightly exceeded expectations in the third quarter, with a net profit increasing by 12% quarter-on-quarter to RMB 18.5 billion, up 41% compared to the same period last year. The net profit for the first nine months was RMB 49 billion, accounting for 73% of the full-year market expectation of RMB 67 billion, indicating that the expected net profit for the fourth quarter is only RMB 18 billion. Given that the fourth quarter is typically better than the third quarter due to seasonal factors, the market is expected to moderately adjust its earnings forecast upwards. The bank also noted that since CATL's stock price has surpassed the target price, it will be under review. The bank previously set a target price of HKD 495 for the stock and rated it as "buy."
The bank also quoted management as saying that the demand for electric vehicle and energy storage system batteries is strong and is expected to continue into next year. Key demand drivers include the increase in battery installation per vehicle, rapid growth in electric heavy truck sales, and improved utilization and profitability of domestic and international energy storage projects. The company also stated that the first phase of the Hungarian factory is currently testing equipment and reaffirmed its goal to complete construction by the end of the year
