UBS initiated coverage on CATL (03750.HK) +2.400 (+0.739%) Short selling $427.75M; Ratio 31.095% with a Buy rating and a target price of HKD390, with a PE multiple of 20.5x 2026E PE. Despite investor concerns about geopolitical risks and intense competition affecting the company's ability to maintain its brand premium and high margins, the broker considered that batteries are far from commodities. In the competition for electric vehicles (EVs) and energy storage systems (ESSs), differentiation in safety, quality, and technology is becoming increasingly pivotal. It was forecast that the company's net profit per unit will remain at RMB107/ kWh in 2025, backed by leading technology, rapid innovation, continuous efficiency improvements, and cost control.Related NewsCLSA: CATL (03750.HK) H-A Premium Reaches Highest Lv. Since H-Shr Listing; Premium Expected to PersistCATL's H-shares are trading at 17x 2026E PE on UBS estimates, which aligned with the broker’s expectations but remained lower than GOTION HIGH-TECH (002074.SZ) -0.080 (-0.247%) ’s 26x and LG Energy Solution's (LGES)’s 47x. The broker believed this does not fully reflect the company's rapid sales growth, strong unit profitability, and robust return on equity (ROE) performance. (HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-06-27 16:25.) (A Shares quote is delayed for at least 15 mins.)