UBS: Ningde Times fourth quarter profits exceed expectations, giving it a target price of 660 Hong Kong dollars and a "buy" rating.

UBS released a research report stating that in the fourth quarter of last year, CATL's net profit was 23 billion yuan, an increase of 25% compared to the previous quarter and 57% compared to the previous year, exceeding UBS and market expectations by 14% and 19% respectively. The full-year net profit was 72 billion yuan, an increase of 42% compared to the previous year, exceeding the bank's and market expectations by 4% to 6%. The management remains confident in the demand for electric vehicles and energy storage systems this year; currently, the company's price transmission mechanism is effective, with management stating that pricing of energy storage system projects generally closely follows market trends. In addition, the company has strengthened cost control capabilities since the last round of raw material cost increases, so management expects future quarterly profits to not undergo significant fluctuations. To cope with strong backlog orders, management expects to increase capital expenditures this year to accelerate capacity expansion. The bank currently has a target price of 660 Hong Kong dollars and a "buy" rating on the stock.