DBS has released a report indicating that CATL (03750) experienced a 41% year-on-year increase in net profit for the third quarter, primarily supported by strong sales growth and solid profitability, aligning with expectations. During this period, shipments grew by 44% year-on-year and 20% quarter-on-quarter, reaching approximately 180 GWh. The bank slightly raised its 2026 earnings forecast by 1% due to an increase in sales projections and maintains a "Buy" rating, lifting the price target for CATL's H-shares from HKD 484 to HKD 635, and the price target for CATL's A-shares from RMB 355 to RMB 448. The bank holds a positive outlook for the group's performance next year, driven by the release of new capacity and robust battery demand. It was mentioned that the group is currently enhancing capacity in Germany and constructing new overseas production facilities in Hungary, Spain, and Indonesia. The anticipated expansion in scale, improved cost efficiency, continuous product enhancements, and strong financial management capabilities are expected to reinforce CATL's position as a global industry leader.