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<Research> M Stanley: CATL (03750.HK) Next-Generation Condensed-State Battery to Boost Profitability; Raises TP to HKD695
Recommend 12 Positive 14 Negative 14 |
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Morgan Stanley said in a research report that CATL (03750.HK) unveiled its next-generation condensed-state battery at the Beijing Auto Show, setting a new benchmark for luxury electric vehicle models and accelerating the electrification of the luxury vehicle segment. The broker believes that high-end batteries command higher average selling prices, while luxury electric vehicle sales are typically less price-sensitive. As the contribution from premium solutions such as the Qilin battery and condensed-state battery increases, the companys overall profit margin should benefit even if pricing in the mass market remains competitive. M Stanley expects the condensed-state battery to further solidify CATLs dominant position in the high-end electric vehicle battery market, including luxury and ultra-luxury brands, helping the company expand its lead in long-range and high-performance applications where technological barriers are the highest. The broker forecasts that from 2026 to 2028, annual high-end deployment of the companys electric vehicle batteries will reach 50 to 80 gigawatt-hours, and is expected to exceed 100 gigawatt-hours in the long term. On the back of rising high-end penetration, Morgan Stanley raised its EBITDA forecasts for CATL by 6%, 8% and 9% for 2026 to 2028, respectively. Earnings forecasts for the same period were lifted by 6.5%, 9% and 10%, respectively. The broker increased its H-share TP to HKD695 from HKD655 and maintained an Equalweight rating. It also raised the A-share TP for CATL (300750.SZ) to RMB560 from RMB530 and reiterated an Overweight rating. This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. Auto-translated by AI AASTOCKS Financial News |
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