The Economic Information Agency reported on the 21st that CATL (03750) (Shenzhen: 300750) announced its third-quarter revenue reached 165.221 billion yuan (RMB, same below), up 58.58% year-on-year; net profit was 21.246 billion yuan, up 14.54% year-on-year but down 5.8% quarter-on-quarter, falling short of the market expectation of 26.03 billion yuan.
CATL's A-shares currently dropped 8.41%, trading at 237.28 yuan; its H-shares also plunged over 8%, at 378.2 HKD.
For the first nine months of the year, CATL's revenue totaled 442.137 billion yuan, up 56.19% year-on-year; net profit reached 64.53 billion yuan, up 31.60% year-on-year. Revenue growth was primarily driven by expanded business scale leading to increased income.
Citigroup lowered its target price for CATL's A-shares from 500 yuan to 479 yuan, and for its H-shares from 765 HKD to 732 HKD, citing the company's Q3 2026 results falling short of expectations.
Analysts including Jack Shang stated in a report that the lower-than-expected net profit in the third quarter was mainly due to lower-than-expected gross margin, increased expenses, and higher asset impairment losses. The lower gross margin was primarily caused by revenue recognition from low-margin products, the impact of consumption tax, and a reduction in battery export tax rebate rates.
It is understood that mainland China will resume levying a 2% battery consumption tax starting September 2026, increasing to 4% in September 2027. The battery export tax rebate rate was reduced from 9% to 6% in April 2026 and will further decrease to zero starting January 2027. (jq)
CATL's A-shares currently dropped 8.41%, trading at 237.28 yuan; its H-shares also plunged over 8%, at 378.2 HKD.
For the first nine months of the year, CATL's revenue totaled 442.137 billion yuan, up 56.19% year-on-year; net profit reached 64.53 billion yuan, up 31.60% year-on-year. Revenue growth was primarily driven by expanded business scale leading to increased income.
Citigroup lowered its target price for CATL's A-shares from 500 yuan to 479 yuan, and for its H-shares from 765 HKD to 732 HKD, citing the company's Q3 2026 results falling short of expectations.
Analysts including Jack Shang stated in a report that the lower-than-expected net profit in the third quarter was mainly due to lower-than-expected gross margin, increased expenses, and higher asset impairment losses. The lower gross margin was primarily caused by revenue recognition from low-margin products, the impact of consumption tax, and a reduction in battery export tax rebate rates.
It is understood that mainland China will resume levying a 2% battery consumption tax starting September 2026, increasing to 4% in September 2027. The battery export tax rebate rate was reduced from 9% to 6% in April 2026 and will further decrease to zero starting January 2027. (jq)