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-A (300750.SZ, 300750 CH)
- Call to Action: Add (High Conviction)
- Target Price: Rmb575 (raised from Rmb505)
- Current Price: Rmb431.0
- Upside: 33.4%
- Key Idea: CATL delivered strong 1Q26 results, beating revenue and profit forecasts due to higher-than-expected shipments of power and energy storage system (ESS) batteries. The company is regaining market share in both power and ESS batteries, supported by increased battery capacity per vehicle, strong export momentum, and robust ESS demand in China, US, and Europe. Forecasts for battery shipments and earnings have been raised.
- Highlights:
- 1Q26 revenue: Rmb129bn (+24% yoy), net profit: Rmb20.7bn (+49% yoy).
- FY26F/FY27F/FY28F EPS raised by 18%/17%/15%.
- Power battery shipment forecast: 758/936/1,133 GWh for FY26F/27F/28F.
- ESS battery shipment forecast: 217/264/310 GWh for FY26F/27F/28F.
- Risks: Slower EV penetration overseas, faster technological advances by peers.
Implications: CATL is viewed as regaining market leadership in both power and ESS batteries, with positive catalysts including new product penetration and technology breakthroughs. The raised target price and “Add” rating reflect confidence in continued growth and market share gains. Investors are encouraged to consider CATL-A for exposure to a leading battery supplier with strong sector tailwinds.
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 website : https://www.chinastock.com.hk
