Citi stated that CATL recorded a net profit of RMB 20.7 billion in the first quarter of this year, representing a year-on-year increase of 48.5% but a quarter-on-quarter decline of 10.5%. This figure accounted for 22% of the bank's full-year forecast and 23% of the market's full-year projection, meeting the bank's expectations while slightly exceeding market consensus. The bank continues to favor CATL's A-shares as its top pick, maintaining a target price of HKD 576. This valuation corresponds to a projected price-to-earnings ratio of 27.9 times and a price-to-book ratio of 6.6 times for the current year, with a "Buy" rating. Excluding non-recurring items, the company's core profit was RMB 18.1 billion, up 53% year-on-year but down 13% quarter-on-quarter. The gross profit margin for the period was 24.3%, a decrease of 3.2 percentage points from the previous quarter but an increase of 0.6 percentage points compared to the same period last year. Management indicated that battery deliveries during the period exceeded 200 GWh, growing by over 60% year-on-year, with energy storage system batteries accounting for approximately 25% of total battery sales. Management also emphasized ongoing efforts to pass costs through to customers in order to maintain stable unit net profit.
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