Haitong International released a report saying that CATL (03750.HK) +1.000 (+0.161%) Short selling $419.39M; Ratio 36.363% recorded revenue of RMB276.917 billion in 1H26, up 54.8% YoY, while net profit attributable to shareholders reached RMB43.284 billion, up 41.98% YoY. Among them, 2Q26 net profit attributable to shareholders was RMB22.546 billion, up 8% QoQ and 36.46% YoY, with profit growth showing a quarter-by-quarter acceleration trend. Net profit after non-recurring items in 1H26 reached RMB39.013 billion, up 43.44% YoY. Comprehensive gross margin in the first half was 23.93%, down slightly by 1.09 ppts YoY, but remained solid amid raw material price fluctuations and intensified industry competition.

The report noted that, on the policy front, the consumption tax on lithium batteries will resume on September 1, while export tax rebates will be fully cancelled from January 1, 2027, which will benefit leading enterprises by enhancing their competitive advantages.

Considering the company's continued earnings growth since 2026 and its firmly established market-leading position, along with the continued commercialization of new technologies such as sodium-ion batteries and share buybacks demonstrating management confidence, the broker assigned a 2026 target PE ratio of 32x for the Hong Kong-listed shares. The broker forecast net profits of RMB95.9 billion, RMB117.9 billion and RMB144 billion for 2026 to 2028 respectively, corresponding to a target market capitalization of RMB2.65 trillion. Based on the H-share capital ratio and the current RMB/HKD exchange rate of 1.15, the Hong Kong share TP was set at HKD773. The broker maintained its Outperform rating.

(ha/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-07-24 16:25.)