Core Viewpoint - CATL, a global leader in power batteries, is positioning itself as a pioneer in the new energy industry rather than just a battery manufacturer, emphasizing its strategic initiatives in battery swapping, energy storage, and zero-carbon ecosystems [1] Group 1: Company Developments - CATL is actively pursuing a secondary listing in Hong Kong, with plans to officially start trading on May 20, following a rapid IPO process that took less than 100 days from application to expected listing date [2][3] - The IPO pricing is set at a high end of HKD 263 per share, close to its A-share closing price, indicating strong market confidence despite current challenges [4][7] - The IPO has attracted a diverse group of cornerstone investors, including major energy companies and sovereign wealth funds, with total subscriptions potentially reaching HKD 203.71 billion [5][6] Group 2: Financial Performance - As of Q1 2025, CATL reported cash reserves exceeding CNY 320 billion, indicating strong liquidity, although international expansion requires significant foreign currency reserves [6] - For the fiscal year 2024, CATL achieved revenue of CNY 362.01 billion and a net profit of CNY 50.75 billion, reflecting a year-on-year growth of 15.01% [12] - The company has initiated a share buyback plan of up to CNY 8 billion, with CNY 1.55 billion already repurchased by the end of April 2025 [12] Group 3: Market Position and Strategy - CATL's market share and revenue are under pressure due to increased competition and policy risks in overseas markets, but it remains a dominant player in the battery sector [1] - The company is expanding its global footprint with 13 production bases and aims for over 30% of its revenue to come from international markets by 2024 [5] - CATL's strategic focus includes promoting battery swapping models and enhancing its role as a zero-carbon operator, which could lead to new revenue streams [10][11] Group 4: Valuation and Market Perception - The upcoming H-share listing is expected to enhance CATL's global influence and could lead to a revaluation of its stock, particularly in light of its strong fundamentals [7][8] - The company is seen as potentially undervalued compared to peers like LG Energy, with a significant gap in market capitalization despite higher output [9] - Recent stock performance indicates a positive market sentiment, with a 24% increase over the last 20 trading days, suggesting a correction in investor expectations [8]