CATL (03750) shares surged 22% cumulatively after earnings: UBS call warrant 24783 soared 255% in two days! Capture the upward trend of the underlying stock.

The Hong Kong-listed new energy sector continues to strengthen driven by favorable earnings reports. Looking at the overall performance of the new energy sector, yesterday (March 11) the A-share new energy sector performed strongly across the board, with active performances in multiple sub-sectors such as photovoltaics, lithium batteries, and energy storage. By the close, Sino-Energy Technology rose by the maximum limit of 20%, while Mingyang Electric, Ai Luo Energy, and Ginlong Technologies gained over 10%. Shares like Deye Co., Ltd. and Click Electronics were locked in trading limits. Sungrow Power Supply, a leading photovoltaic inverter company, once surged more than 12% during the session, closing up 9.49% with a trading volume of 24.312 billion yuan, ranking first in A-shares.

As of the morning session on March 12, 2026,CATL (03750) share price hit another new high since its H-share listing, reaching a peak of 614.5 yuan, and was last traded at 607.5 yuan, up approximately 1.33%, with active trading.In market news, CATL recently announced its 2025 annual report with impressive performance. The company achieved revenue of approximately 423.7 billion yuan for the year, a year-on-year increase of 17.04%; net profit attributable to shareholders reached about 72.2 billion yuan, a year-on-year increase of 42.28%. Following the earnings release, the stock price rose for three consecutive days, with an accumulated increase of 22.1%. Several major investment banks collectively raised their target prices for the H-share, with Haitong International setting a target price of 656 yuan and CLSA raising it further to 710 yuan, reiterating a 'High Conviction Outperform' rating.

From a technical analysis perspective, based on data as of March 11, CATL's stock price at 599.5 yuan has stabilized above the 10-day line (511.03 yuan), 30-day line (506.25 yuan), and 60-day line (502.48 yuan), showing a bullish alignment of moving averages, reflecting strong short-term momentum. The Relative Strength Index (RSI) is at 66, indicating a strong position but nearing overbought levels. Notably, multiple indicators such as the Stochastic Oscillator, Bollinger Bands, and Ichimoku Cloud are issuing buy signals, while the CCI indicator also shows a buy signal, supporting further upward movement in the stock price. However, the Williams %R and Momentum Oscillator are showing sell signals due to overbought conditions. The aggregate number of sell signals totals 'Sell', with a strength of 10, suggesting that short-term profit-taking may be needed.

In terms of support and resistance levels, the immediate key support level is at 531 yuan, which serves as a crucial short-term defense line. A breach could lead to a test of the critical support area at 514 yuan. Above, resistance is concentrated at 651 yuan and 685 yuan, with 651 yuan being close to Haitong International’s target price, making it a key short-term breakout target. Reviewing the March 11 analysis from [HK Stocks Podcast], analyst Simon pointed out that CATL’s recent trend has been sharp, with the RSI surpassing 80—a rare occurrence over the past two to three months—reflecting significant short-term overbought conditions. The stock price has broken through the upper band of the Bollinger Bands, and if it continues to rise technically, the first resistance level will be at 614.84 yuan, with the next major resistance at 651 yuan. Currently, short-term sell signals dominate, with a total of 10 sell signals and 5 buy signals, indicating market divergence on future outlook. Some investors have started buying bearish warrants with a recovery price of 550 yuan. Given the latest stock price of 614 yuan, which has already surpassed the first resistance level mentioned in the Podcast, the next target will challenge the 651 yuan mark. March 11 [Hong Kong Stock Podcast] Hang Seng Index, CATL, Nio, Geely Auto, Tencent, CNOOC

Looking back at the performance of warrant products, the four bullish CATL products we mentioned on March 9 performed exceptionally well in the following two days, effectively capturing the sharp rise in the underlying stock. UBS call warrant (24783) recorded a 255% increase over the two days after being mentioned, compared to a 19.18% rise in the underlying stock during the same period; Bank of China call warrant (23687) $BI-CATL@EC2606B.C (23687.HK)$ Recorded a 249% gain; HSBC bull certificate (68836) $HS#CATL RC2611A.C (68836.HK)$ Surged by 90%; UBS bull certificate (67846) gained 83%. All four products significantly outperformed the underlying stock, fully demonstrating the leverage effect of derivatives, with call warrants particularly standing out, reflecting the high sensitivity of out-of-the-money products to rapid increases in the underlying stock.

In terms of deploying warrant and bull-bear certificate products, investors can choose from the following products based on their own risk preferences, in conjunction with the current support and resistance levels.

For call warrants, Bank of China call warrant (13229) $BI-CATL@EC2609A.C (13229.HK)$ Has an exercise price of 629.38 yuan and provides approximately 5.7 times leverage; UBS call warrant (22841) $UB-CATL@EC2605A.C (22841.HK)$ With an exercise price of 639.88 yuan and offers about 8.9 times leverage. These exercise prices are linked to the key resistance level of 651 yuan, suitable for investors expecting the stock price to break through resistance and challenge the 650 yuan mark. The advantage of Bank of China call warrant (13229) lies in its lowest implied volatility and higher leverage; while UBS call warrant (22841) has the lowest premium and even higher leverage, making it more attractive for investors seeking amplified effects.

In addition to the newly launched products mentioned above, there are still several call warrants with an exercise price of 408.68 yuan available in the market, offering an out-of-the-money degree of approximately 32.62%, suitable for investors with specific leverage requirements. Bank of China call warrant (26420) provides effective leverage of 6.5 times, a premium of 33.75%, and a street ratio of 18.10%, with premiums in a relatively low range, suitable for investors who require leverage but wish to control premium costs. UBS call warrant (26402) offers effective leverage of 5.79 times, with a later expiration date (September 2, 2026), and a street ratio of only 4.16%, ensuring good liquidity and stability of chips, suitable for investors looking for a slightly longer holding period and focusing on chip concentration. Societe Generale call warrant (26276) offers effective leverage of 5.79 times with a higher implied volatility (48.015%), suitable for investors sensitive to volatility and inclined to capture short-term opportunities. J.P. Morgan call warrant (26321) provides effective leverage of 5.79 times, with the smallest fluctuation range (-3.26%) among the list, showing relatively stable price performance, making it suitable for risk-averse investors aiming to mitigate short-term volatility impacts.

In terms of put warrants related to CATL, the following four products can be prioritized. BOC Put Warrant (26420)$BI-CATL@EP2608A.P (26420.HK)$With an effective leverage of 6.42 times and a premium of 33.75%, expiring on August 26, 2026, its leverage performance stands out, making it suitable for bearish strategies seeking amplification effects. UBS Group Put Warrant (26402) has an effective leverage of 5.79 times, a premium of 34.08%, and expires on September 2, 2026. The later expiration date offers better chip stability, ideal for investors preferring slightly longer holding periods. Guotai Junan Put Warrant (26241) offers an effective leverage of 6.51 times and a premium of 33.74%. Its leverage is leading among similar products, making it highly attractive to investors with high leverage requirements. Societe Generale Put Warrant (26276)$SG-CATL@EP2608A.P (26276.HK)$has an implied volatility of 48.015%, providing strong volatility elasticity, and is suitable for investors aiming to capture short-term volatility opportunities.

For bull contracts, HSBC Bull Contract (55290) has a stop-loss price of 480 yuan, offering 4.9 times actual leverage with the lowest premium; Societe Generale Bull Contract (55713) has a stop-loss price of 485 yuan, providing 5 times actual leverage, with relatively higher leverage and low premium. This stop-loss price is below the current primary support level of 531 yuan, offering ample buffer space, suitable for investors expecting the share price to stabilize at the 531 yuan support level and rebound further.

Overall, investors optimistic about a further rebound in CATL may consider UBS Group Call Warrant (22841) to capture breakout movements or Societe Generale Bull Contract (55713) for higher-leverage deployment; while bearish investors may opt for Guotai Junan Put Warrant (26241) with the highest leverage to capture pullback opportunities, or Societe Generale Put Warrant (26276) to capitalize on short-term volatility.

Interactive Questions:

Dear readers, CATL (03750) closed at 599.5 yuan yesterday, hitting a high of 608 yuan during trading, and broke through the 610 yuan mark this morning. Market news shows that some major banks have raised their target price to 710 yuan, while some investors are starting to buy back bear contracts with a stop-loss price of 550 yuan. In light of this divergence between bulls and bears, how would you proceed?

A) Optimistic about future performance, consider following call warrants or bull contracts to bet on breaking through the 651 yuan resistance.

B) Believe it's overbought in the short term, deploy put warrants or bear contracts to capture pullback opportunities.

C) Temporarily wait and see, waiting for the stock price to retest the 531 yuan support level before making a decision.

Reminder: This article does not constitute any investment advice.

This article is for reference only and does not constitute any investment advice. The market data, opinions, and analysis contained herein may change at any time without prior notice. We are not responsible for any loss or damage caused by reliance on the information in this article. Technical analysis only shows whether certain technical conditions are met; a comprehensive assessment of asset performance should combine other data and should not solely rely on this article to make trading decisions. Please note that past performance is not indicative of future results. Follow Jenny's insights on Hong Kong stock warrants for more professional analysis.

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#Ningde Era #03750 #Hong Kong Stocks #Technical Analysis #Support and Resistance Levels #Warrants #Bull and Bear Certificates #Call Options #Put Options #Earnings Announcement

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