Citi: Raises CATL target price to HKD 685 as profit margins continue to expand

Citi released a research report stating that CATL achieved another impressive quarterly performance, with a year-on-year profit growth of 41% in the third quarter of 2025 and a quarter-on-quarter growth of 12%, in line with the market's revised expectations. The gross margin expanded by 0.2 percentage points to 25.8% quarter-on-quarter, alleviating market concerns about the pressure on profit margins due to soaring lithium costs in that quarter. Citi raised the target price for CATL's H shares from HKD 670 to HKD 685; the target price for CATL's A shares was increased from RMB 490 to RMB 500, and reiterated the "outperform" rating for CATL's H shares, while the A share rating is "highly confident outperform."