Understanding the Market | CATL rises over 4%, stock price continues to hit new highs since listing, up more than 50% compared to the offering price

CATL rose over 4% again, reaching HKD 414.8, setting a new high since its listing, with an increase of more than 50% compared to the IPO price of HKD 263. As of the time of writing, it rose 4.71%, reported at HKD 413.6, with a trading volume of HKD 798 million. In terms of news, Morgan Stanley's recent research report pointed out that the company's capacity growth in recent months is the highest in the industry. Although consultant opinions reflect a slight decline in capacity in mid-July, overall growth remains robust and exceeds expectations. Additionally, the bank expects second-quarter earnings to surpass expectations, estimating sales at 140 to 150 GWh, with net profit expected to increase by 25 to 30% year-on-year, reaching RMB 15.5 billion to 16 billion. Unit economics are similar to the first quarter. Goldman Sachs recently stated that it expects CATL's revenue in the second quarter of this year to reach RMB 104.7 billion, with net profit reaching RMB 15.6 billion, believing its valuation is attractive, maintaining a "buy" rating for CATL's A-shares and Hong Kong stocks