Lion: Reiterated "Highly Convinced Outperform Market" Rating on CATL, Positive on Cost Resistance Capabilities

SadMoneyMeow · 2026-03-17T08:02:27+00:00

Lyon reiterates its "highly confident outperform" rating on CATL, with a target price of HK$710 and RMB 505. It expects first-quarter 2026 profit to grow approximately 45%, despite a slight decline in gross margin. Investor confidence is improving, and the stock price is expected to continue rising.

SadMoneyMeow

2026-03-17 08:02:27

Abstract generation in progress

Lyon Securities issued a research report reaffirming its “High Conviction to Outperform the Market” rating on CATL (03750) and (300750.SZ), with target prices of HKD 710 and RMB 505 respectively. After the strong Q4 2025 performance of H-shares was announced, they have risen by 33% over the past week, with the premium of H-shares over A-shares expanding to a record high of 45%. Investors have largely eased their main concerns since the beginning of the year, and the bank believes these issues should gradually improve for the rest of the year. Despite the stock price increase, the bank remains positive on CATL.

The bank pointed out that the next key date will be the release of CATL’s Q1 2026 results at the end of April. It estimates that CATL’s gross margin for Q1 2026 will decline by 1-2 percentage points quarter-on-quarter due to delayed cost pass-through, but driven by strong battery shipments, net profit for Q1 2026 should still grow approximately 45% year-on-year to RMB 20 billion. The bank believes Q1 2026 will demonstrate how battery manufacturers can withstand the surge in raw material costs, and considers CATL better positioned than peers to resist rising costs.

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