Nomura cut CATL (03750.HK) target price to 408 yuan from 632 yuan and kept a Buy
rating after third-quarter results missed expectations. Revenue rose 59% YoY and
12% QoQ to 165 bln yuan, broadly tracking battery shipments. Gross margin fell
5.1pp YoY and 2.5pp QoQ to 20.7%, driven by a mix shift toward higher domestic
energy-storage sales. Net profit was 21.2 bln yuan, up 15% YoY but down 6% QoQ;
net margin declined 4.9pp YoY and 2.4pp QoQ to 12.9%. Management attributed
margin pressure to higher battery consumption taxes, reduced export VAT rebates
and increased asset-impairment losses. Nomura expects global battery demand to
remain resilient over the long term—supported by rising EV penetration in Europe
and emerging markets and by energy-security and AI/data-center deployments
driving storage demand—and sees planned global capacity expansion progressing on
schedule.
