Analysts at Goldman Sachs have initiated coverage on CATL (03750) with a Buy rating, setting a target price of HK$946 for its H-shares. The report suggests that while the market generally views the energy storage business as a volume growth opportunity, the firm believes system integration will be a key driver for the company's next phase of value creation.

This integration is expected to drive gross margin expansion, generate high-margin recurring service revenue, and support a valuation re-rating. Goldman Sachs forecasts that the proportion of integrated energy storage system solutions, including DC and AC offerings, within CATL's total energy storage shipments will rise from approximately 33% in 2025 to nearly 66% by 2030.

This shift is projected to boost the energy storage segment's gross margin from around 27% to about 30%, with unit gross profit increasing from RMB 138 per kilowatt-hour to approximately RMB 200 per kilowatt-hour.

Regarding electric vehicle batteries, Goldman Sachs also anticipates that CATL's market share in China will steadily increase from 46% in 2025 to 50% by 2030.