Bank of America Merrill Lynch: Raised the target price of CATL to HKD 475, slightly increased the profit forecast for 2025-2027.

Bank of America Securities released a research report stating that CATL's second quarter revenue was 94 billion yuan, representing an 8% year-on-year growth and an 11% quarter-on-quarter increase. Due to an increase in overseas sales, the appreciation of the euro against the renminbi, and more license income, the company's gross profit margin exceeded expectations. Net profit for the period increased by 34% year-on-year and by 18% quarter-on-quarter, outperforming expectations. The bank raised CATL's earnings forecasts for 2025-2027 by 3%, 5%, and 7% to mainly reflect an increase in revenue forecasts for electric vehicle batteries and an increase in unit net profit forecasts. The bank raised the company's target price from 400 Hong Kong dollars to 475 Hong Kong dollars and reiterated a "buy" rating.