Understanding the Market | CATL rises over 5%, stock price hits a new high since listing, Goldman Sachs expects positive performance in the second quarter

CATL rose over 5%, reaching a new high of HKD 395.4 since its listing. As of the time of publication, it was up 5.67%, priced at HKD 395.2, with a transaction volume of HKD 716 million. In terms of news, Goldman Sachs' recent research report indicated that CATL is expected to achieve revenue of RMB 104.7 billion in the second quarter of this year, with net profit reaching RMB 15.6 billion. They believe its valuation is attractive and maintain a "Buy" rating for CATL's A-shares and Hong Kong stocks. The bank believes that the improvement in CATL's product portfolio supports the trend of expanding unit gross margins. Benefiting from a 28% year-on-year increase in the European battery electric vehicle (BEV) market sales in the first five months of this year, which drove battery export volumes to a monthly historical high, CATL's strong overseas shipments offset the headwinds in the Chinese market. Goldman Sachs expects its mixed increase battery unit gross margin to reach RMB 150 per kWh, an increase from RMB 147 per kWh in the first quarter of 2025, and anticipates positive performance for CATL in the second quarter