UBS: CATL Exceeds Q1 Expectations with Strong April-May Orders

Stock News11:49

UBS released a research report stating that CATL's first-quarter performance surpassed expectations. Net profit increased 49% year-on-year to RMB 20.7 billion, benefiting from accelerated deliveries, but fell 10% quarter-on-quarter due to seasonal factors, representing 23% of the bank's and market's full-year forecasts. Excluding non-recurring items, net profit rose 53% year-on-year to RMB 18.1 billion. The bank currently assigns an A-share target price of RMB 500 and a "Buy" rating to CATL, anticipating more details on next-generation battery products, solutions, and ecosystem strategy at the upcoming Super Tech Day on the 21st of this month. Management emphasized strong order intake in April and May, expecting capacity utilization to remain high at 85% to 90% in both the first and second quarters. Although the company did not proactively adjust prices in Q1, it anticipates a potential year-on-year decline in Q2 gross margin due to rising commodity costs and a high base effect. However, management indicated that most raw material cost fluctuations can be passed through.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment