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<Research>CLSA: CATL (03570.HK) TP $535 on Limited Impact from Yichun Lithium Production Suspension
Recommend 7 Positive 9 Negative 9 |
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CATL (03570.HK)(300750.SZ)'s Yichun lithium mine factory has suspended production since 10 August due to the expiration of its mining license, according to CLSA's research report. The broker believed that this move is related to the Chinese government's crackdown on illegal lithium mining since July. However, CLSA expected the suspension to have limited impact on CATL's operations, as the company has diversified lithium resource supply channels and can quickly switch to third-party procurement if necessary. The broker anticipated short-term upside risk for lithium prices, which may suppress battery manufacturers' profits in 2H25. However, CATL's strong profit defense capabilities during periods of lithium price volatility gives CLSA confidence that its ability to withstand shocks will surpass its peers. Therefore, the broker reiterated ratings at High Conviction Outperform/ Outperform on CATL's A-/ H-shares, with target prices of RMB390/ $535. AASTOCKS Financial News Website: www.aastocks.com |
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