Goldman Sachs: CATL's Q3 Net Profit Misses Expectations, Target Price Cut by 9.6%, "Buy" Rating Maintained

Deep News
10/21

Goldman Sachs has released a research report stating that CATL (3750.HK) faced temporary headwinds in the third quarter, including product mix changes and consumption tax, with Q3 net profit rising 14.54% year-on-year to RMB 21.246 billion, falling 12% short of expectations.

The bank has lowered its target price for CATL by 9.6%, from HK$859 to HK$777, while maintaining its "Buy" rating.

Goldman Sachs believes the lower-than-expected net profit was primarily due to temporary product mix shifts, consumption tax impacts, and inventory write-downs made under prudent accounting principles.

Goldman Sachs emphasized that the longer revenue recognition cycle of the high-value-added system integration business explains most of the margin pressure, while management reiterated that global battery shipments will maintain a compound annual growth rate of 20% to 30% over the next five years, with overseas energy storage and electric vehicle prospects remaining broad.

Goldman Sachs believes the market is overly pessimistic about industry risks and underestimates CATL's ability to navigate headwinds as a global lithium battery leader.

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