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Citi Raises CATL (03750.HK) TP to HKD888, Expects Profit to Reach RMB100B This Yr
2026-06-05 11:15:32
After CATL (03750.HK) announced its 1Q26 results, Citi updated its financial model and raised its earnings forecasts for FY2026-28 by 9%/ 9%/ 7% to RMB103 billion/ RMB126 billion/ RMB149 billion, respectively. Although unit gross profit forecasts were lowered, the broker raised its battery sales projections and expected battery production and sales to reach milestones of 1.2 terawatt-hours (TWh) and 1.0 TWh, respectively, in FY2026, representing YoY growth of 61% and 54%.

Despite a high base, the broker expected CATL’s battery production and shipments to remain strong in 2H26, with demand for ESS serving as a key highlight. Citi also noted that lithium carbonate prices above RMB200,000 per tonne will not destroy demand in the short term; instead, higher lithium prices would signal resilient demand.

Citi expected the company’s net profit in 2Q26E to reach RMB24.3 billion, corresponding to battery sales of 260 gigawatt-hours, representing YoY growth of 77% and QoQ growth of 29%, respectively.

Citi raised the A-share TP of CONTEMPORARY AMPEREX (300750.SZ) from RMB576 to RMB603. Meanwhile, based on a historical H/A share premium of 28% (reflecting its scarcity as a global battery leader in offshore markets), the broker lifted the H-share TP from HKD621 to HKD888 and maintained a Buy rating, continuing to list it as the sector’s top pick.
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AASTOCKS Financial News
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