HK Movers | CATL Sinks as Profit Concerns Overshadow Strong Third-Quarter Revenue Growth

Market Focus
2 hours ago

On October 21, CATL fell 9.18% in Regular Trading.

The move followed its latest quarterly results and a fresh wave of profitability concerns, after third-quarter net profit rose year on year but declined from the prior quarter, while a major broker recently downgraded the stock citing faster-than-expected deterioration in industry profitability.

CATL reported third-quarter revenue of RMB165.221 billion, up 58.58% year on year, and net profit of RMB21.246 billion, up 14.54% year on year. For the first three quarters, revenue reached RMB442.137 billion, up 56.19%, while net profit was RMB64.53 billion, up 31.60%. However, third-quarter net profit was down about 5.77% sequentially from the previous quarter, which appears to have reinforced market focus on margin pressure rather than top-line growth.

Separately, a major international broker cut CATL's Hong Kong rating to Neutral from Overweight and lowered its target price to HK$500 from HK$725, arguing that investor concern has shifted from demand to earnings and that profit redistribution across the battery supply chain could pressure sector leaders.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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