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<Research>CLSA: Rating High Conviction Outperform Reaffirmed for CATL (03750.HK), Bullish on Cost Resilience
Recommend
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Positive
11
Negative
4
CATL (03750.HK)'s H-shares have rallied 33% over the past week following its strong 4Q25 results, with its H-A premium expanding to a record high of 45%, CLSA published a research report saying.

Investors have largely set aside major concerns YTD, and the broker believed that this should gradually improve over the remainder of the year. Post-share-price-rally, CLSA maintained a positive view on CATL, and reaffirmed its High Conviction Outperform ratings on both CATL's A-/ H-shares, with target prices of RMB505/ $710, respectively.

Related NewsCATL: No Significant Change in Annual Production Plan; Capacity Utilization Remains Relatively Saturated
CLSA believed that 1Q26 will be a testimony to how battery manufacturers withstand the sharp rise in raw material costs, and considered CATL to be better positioned than its peers to resist cost inflation.
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