According to reports, UBS has stated that CATL (03750) slightly exceeded expectations in its third-quarter performance, with net profit rising by 12% quarter-on-quarter to CNY 18.5 billion, representing a year-on-year increase of 41%. For the first nine months, net profit reached CNY 49 billion, accounting for 73% of the annual market projection of CNY 67 billion, indicating that the expected net profit for the fourth quarter is only CNY 18 billion. Given that the fourth quarter is typically favored by seasonal factors compared to the third quarter, it is anticipated that the market will moderately adjust its earnings forecasts upwards. The firm also noted that due to CATL's stock price surpassing its target price, it is placing the stock under review. The previous target price for the stock was set at HKD 495 with a "Buy" rating. Management has indicated strong demand for batteries in electric vehicles and energy storage systems, with expectations that this momentum will carry into next year. Key demand drivers include the increased battery installation per vehicle, rapid growth in electric heavy truck sales, and improved utilization and profitability of domestic and international energy storage projects. The company also mentioned that the first phase of its Hungary factory is currently testing equipment, reaffirming its goal to complete construction by the end of the year.