CATL(SZ:300750) CSC SECURITIES (HK) LTD·2025-05-21 05:06Investment Rating - The report assigns a "Buy" rating for the company, indicating a potential upside of 15% to 35% [4][8]. Core Insights - The company officially listed on the Hong Kong Stock Exchange on May 20, 2025, with an issue price of HKD 263 per share, raising approximately USD 5.3 billion. This listing is expected to enhance the company's access to global capital markets and accelerate its international expansion [9][11]. - The overall market demand for power batteries and energy storage batteries is projected to grow by 30% year-on-year in 2025. As an industry leader, the company is expected to maintain rapid growth in battery shipments [9][11]. - The company plans to utilize 90% of the funds raised from the IPO for the construction of a factory in Hungary, which will have a planned capacity of 72 GWh. This factory aims to support local supply for major automotive clients like BMW and Mercedes [11]. - The company is actively advancing its electric heavy truck battery exchange ecosystem, with plans to establish 300 battery exchange stations across key regions by 2025, aiming for over 50% penetration of electric heavy trucks within three years [11]. Financial Projections - The company’s net profit is projected to be RMB 64.6 billion, RMB 74 billion, and RMB 84.4 billion for the years 2025, 2026, and 2027, respectively, with year-on-year growth rates of 27%, 15%, and 14% [9][11]. - The earnings per share (EPS) are expected to be RMB 14.7, RMB 16.8, and RMB 19.2 for the years 2025, 2026, and 2027, respectively [9][11]. - The current stock price corresponds to a price-to-earnings (P/E) ratio of 18.4, 16, and 14 for H shares, and 18, 15.6, and 13.7 for A shares in the years 2025, 2026, and 2027, respectively [9][11].