CATL Shares Drop Over 4% in Morning Session; CLSA Says Current Valuations Already Reflect Most Market Concerns

Stock News01-22 11:21

CATL (03750) fell more than 4% before the midday break. As of the time of writing, the stock was down 4.65%, trading at HK$463.4, with a turnover of HK$965 million. CLSA released a research report stating that as it moves into 2026, CATL is facing multiple headwinds, raising investor concerns about its growth prospects, including slowing electric vehicle sales in China, rising lithium prices, and a reduction in value-added tax rebates for battery exports. The firm believes that CATL's A-shares and H-shares are currently trading at 2026 estimated price-to-earnings ratios of 17 times and 22 times, respectively, a level that already reflects most of the market's concerns. Considering the firm's forecast for a compound annual growth rate in earnings per share of 31% from 2025 to 2027, the risk-reward profile is attractive.

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