Goldman Sachs has released a research report indicating that CATL (03750, 300750.SZ) has announced its second-quarter results. Net profit for the period rose 36% year-on-year to 225.5 billion yuan, a figure that aligns with both the firm's and market expectations. Revenue for the quarter hit a record high of 1,477.9 billion yuan, representing a 57% increase year-on-year.
The investment bank has reiterated its "Buy" rating, setting target prices of 947 Hong Kong dollars for the H-shares and 565 yuan for the A-shares. Goldman Sachs noted that CATL's battery sales in the first half of the year increased by 60% year-on-year to approximately 435 GWh, with the ESS (Energy Storage System) accounting for a quarter of total sales. Second-quarter sales saw a similar 60% annual increase, reaching about 235 GWh, continuing the strong growth trajectory observed since the fourth quarter of last year.
Management remains optimistic about demand in the second half of 2027 and has reaffirmed its long-term compound annual growth rate (CAGR) target of 20% to 30% for sales. Goldman Sachs pointed out that CATL has announced its largest-ever A-share share buyback plan, involving amounts between 200 billion and 400 billion yuan, intended for the repurchase and cancellation of shares. Concurrently, an interim dividend of 64.9 billion yuan (1.41 yuan per share) has been declared.
Management indicated that most of the company's capacity under construction (totaling 764 GWh) will come online over the next one to two years. Additionally, the sodium-ion battery has secured substantial orders from both domestic and international clients. An AIDC (AI Data Center) dedicated power supply solution is expected to achieve large-scale commercial deployment over the next one to two years. Goldman Sachs believes that CATL is transitioning from a battery manufacturer to a comprehensive energy solutions provider, with its battery energy storage system (BESS) integration business set to unlock a new wave of value creation.
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