Broker: China Galaxy International Securities (Hong Kong) Co., Limited
Date of Report: April 16, 2026
Excerpt from China Galaxy International Securities report.
Report Summary
- Stock: CATL-H (3750.HK)
- Action: Add (reiterate)
- Target Price: HK\$726 (raised from HK\$638)
- Key Idea: CATL delivered strong 1Q26 results, beating expectations on power and ESS battery shipments. The company is regaining market share in both power and energy storage system (ESS) batteries, supported by higher battery capacity per vehicle, special vehicle electrification, and robust vehicle exports.
- Highlights:
- 1Q26 revenue was Rmb129bn (+24% yoy), net profit Rmb20.7bn (+49% yoy), both above forecasts.
- Domestic ESS market share stable, expected to rise to 26% in FY26F due to capacity ramp-up and strong demand.
- Power battery market share in China rose to 47.7% in 1Q26, with significant presence in Europe (44% market share).
- FY26F/27F/28F EPS forecasts raised by 18%/17%/15% to reflect improved outlook.
- Re-rating catalysts: New product penetration and battery technology breakthroughs.
- Downside risks: Slower overseas EV penetration or faster tech advances by competitors.
Implications: The reiteration of “Add” and the raised target price suggest confidence in CATL’s market share recovery and growth potential in both power and ESS battery segments, offering actionable upside for investors. Key drivers are international demand, product innovation, and successful execution on capacity expansion.
above is an excerpt from a report by China Galaxy International Securities (Hong Kong) Co., Limited. Clients of China Galaxy International Securities (Hong Kong) Co., Limited can be the first to access the full report from the China Galaxy International Securities (Hong Kong) Co., Limited website : https://www.chinastock.com.hk
