Zhi Tong Cai Jing·2026-01-28 06:19Core Viewpoint - Citigroup has initiated a 30-day downward catalyst observation for Contemporary Amperex Technology Co., Ltd. (CATL), highlighting concerns over rising costs of lithium, copper, and electrolytes, which may pressure battery manufacturers' profits [1] Group 1: Cost Pressures - Rising costs of lithium, copper, and electrolytes are expected to exert downward pressure on the profits of battery companies [1] - The increase in these raw material costs is a significant factor affecting the financial performance of the industry [1] Group 2: Market Concerns - Weak electric vehicle sales have raised concerns, potentially impacting the stock performance of CATL and similar battery manufacturers [1] - The combination of weak sales and cost pressures may lead to increased selling pressure on the stocks of battery companies [1] Group 3: Investment Rating - Citigroup has set a target price of HKD 621 for CATL and maintains a "Buy" rating for the stock [1]