CLSA: Multiple Positive Factors in CATL's (03750) Potential $5 Billion H-Share Fundraising, Reiterates 'High-Conviction Outperform' Rating

According to Zhitong Finance APP, CLSA released a research report stating that based on the Sum-of-the-Parts (SOTP) valuation method, the target price for CATL’s A-shares (300750.SZ) is RMB 505; for CATL (03750) $CATL (03750.HK)$ the H-share target price is HKD 710, reiterating the 'High-Conviction Outperform' rating.

It is reported that CATL is considering an H-share placement worth up to $5 billion. The bank believes that if the fundraising occurs, the positive factors will outweigh the negatives. The potential $5 billion fundraising would only dilute existing issued shares by 1.2%, which has minimal impact; however, the H-share float will increase by approximately 33%, marking a significant improvement and providing investors with an opportunity to increase their positions to capture the multi-year Energy Storage System (ESS) growth story.

CLSA pointed out that fundamentally, CATL has $49 billion (RMB 334 billion) in cash on hand as of the end of 2025, with a net cash position on the balance sheet, indicating no urgent need for funds in the short term. However, additional funding could provide greater flexibility for capital expenditures and R&D, especially in future battery technology fields such as solid-state batteries.

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