CATL Unlocked: Why 300750.SZ Offers Deep Value After 3750.HK's Soaring Performance

Our platform highlights CATL's (300750.SZ) deep value, rated Strong Buy with a bull target of **RMB 595**. This comes as its H-share (3750.HK) surged **+147.6%** over one year. Data as of Jun 1, 2026.

CATL's Unmatched Global Dominance & Innovation Powerhouse Contemporary Amperex Technology (CATL), listed as 300750.SZ on Shenzhen and 3750.HK on Hong Kong, is the undisputed global leader in EV battery manufacturing, commanding a dominant 37% to 40.7% of the global market share in EV batteries. 7horns AI accurately identified CATL as a top performer, a fact underscored by the extraordinary ascent of its H-share . Now, our newly published report highlights the A-share as a deep value investment opportunity. CATL's financial performance reflects its market leadership: Record Revenue Growth: Q1 2026 revenue hit ¥129.13 billion, marking a robust 52.5% YoY increase, significantly beating consensus estimates and extending a streak of positive surprises. Full-year 2025 revenue reached ¥423.7 billion (+17% YoY). Margin Expansion: Gross margin improved to 26.5% in Q1 2026, driven by lithium price normalization and operational leverage . The company's TTM gross margin of 25.8% (300750.SZ report) or 26.2% (3750.HK report) significantly exceeds the industry average of 20-22%. Cash Flow Fortress: CATL operates with a remarkable negative 94.8 to 96-day cash conversion cycle , meaning it collects from customers before paying suppliers, effectively self-funding its rapid growth. This translates into a net cash balance of approximately RMB 250 billion. R&D Prowess: Over the past decade, CATL has invested over RMB 90 billion in R&D, leading to groundbreaking innovations like the M3P chemistry and the sodium-ion battery, which is planned for mass production in 2026. This technology's commercial viability was recently validated by a 60 GWh supply agreement with HyperStrong for energy storage applications. Diversified Growth: Beyond EV batteries, the energy storage systems (ESS) segment is emerging as a powerful second engine, with Q1 2026 revenue of ¥129.13B and growing at 29% (shipments), carrying higher overseas margins. Global expansion continues with plants in Hungary and Indonesia, strategically positioning CATL to address evolving market demands and regulatory landscapes. The Dual-Listing Disparity: H-Share Momentum vs. A-Share Value CATL's dual listings present a fascinating market dynamic. Over the past year, 3750.HK has delivered a staggering +147.6% return, dramatically outperforming its A-share counterpart, 300750.SZ, which saw a +72.7% return during the same period. This 75 percentage point performance gap (Source 1) has created a significant valuation spread , where the H-share trades at a 94% premium to the A-share in HKD terms. This disparity is primarily driven by structural factors, not fundamental differences in the company: Southbound Connect Inclusion: The inclusion of 3750.HK in the Stock Connect program opened it up to massive incremental demand from mainland Chinese retail and institutional investors. Foreign Institutional Access: Global funds restricted from China's onshore markets can only access CATL through its HK listing, channeling international capital disproportionately into 3750.HK. Liquidity Premium: The Hong Kong listing offers greater liquidity and fewer capital controls, making it a preferred vehicle for large institutional investors. Despite the valuation gap, our CNN model forecasts indicate positive momentum for both: 300750.SZ has a probability of 66.1% going up, and 3750.HK has a probability of 69.0% going up, indicating high confidence of positive returns for both listings. Why 300750.SZ is the Deep Value Play Now While 3750.HK has enjoyed extraordinary momentum, our latest analysis suggests that 300750.SZ currently offers a compelling deep value opportunity. Our analyst rates CATL's A-share a Strong Buy, the highest conviction rating, based on its relative undervaluation and strong technical foundation. Compelling Valuation: 300750.SZ trades at a trailing PEG ratio of 0.59x, signaling that a high-growth compounder is currently priced like a value stock. This is significantly lower than typical industry averages. Bullish Target Price : Our report sets a base target of RMB 434 for 300750.SZ, with a bull case target of RMB 595. This bull case implies a substantial +37% upside from its current price of RMB 433.50, driven by the potential impact of sodium-ion and ESS growth. Strong Technical Support : The A-share is currently consolidating after a pullback but remains in an uptrend, trading above its SMA-200. Key support is identified at ¥400, with a breakout above ¥435 potentially confirming a move towards the ¥450 to ¥460 zone and ultimately our bull target. The RSI (14) at 57 suggests neutral-bullish momentum with room to run. In contrast, while 3750.HK is rated Buy with a base target of HK$770 and a bull target of HK$928, it is technically extended. Its RSI (14) at 65.5 is approaching overbought levels, and it trades +40.1% above its SMA-200. This suggests that while momentum is strong, chasing at all-time highs carries asymmetric downside risk, favoring a patient approach or entry on pullbacks. Navigating Risks & Strategic Outlook CATL, like any industry leader, faces a range of risks, but its robust strategy and financial strength provide significant mitigation: Battery ASP Pressure & Overcapacity: While Chinese production capacity could lead to 10-15% annualized ASP declines, CATL's growing ESS segment and low-cost sodium-ion chemistry provide a buffer. Its superior cost advantage allows it to sustain margins even in a competitive environment. Geopolitical Fragmentation: The U.S. IRA and potential EU anti-subsidy investigations pose challenges. However, CATL's strategic investments, such as its module assembly plant in Hungary, aim to localize supply and qualify for local incentives, de-risking European market access. Raw Material Cost Rebound: Price volatility in lithium and other raw materials remains a concern. CATL's investments in upstream mining and the development of lithium-free sodium-ion batteries act as natural hedges against this exposure. H-Share Placement Overhang : A recent HK$39 billion H-share placement caused short-term dilution . However, the capital is earmarked for global zero-carbon projects, R&D, and working capital , with the expectation that deployed capital will yield strong returns within 18-24 months. CATL's future is underpinned by the global electrification trend, strong policy support in China, and its continuous innovation. The upcoming Q2 2026 earnings report (around August 20) is a key near-term catalyst that could force the market to re-evaluate the company's impressive earnings trajectory and multiple. Conclusion & Investment Recommendation CATL is a powerhouse, driving the global energy transition with unmatched scale, technological leadership, and a unique self-funding growth model. While both its A-share and H-share listings present attractive opportunities, our platform's latest report identifies 300750.SZ as the most compelling value proposition today. We reiterate our Strong Buy recommendation for 300750.SZ, with a bull case target price of RMB 595. This represents significant upside potential and a highly favorable risk-reward profile, as the market currently underprices its substantial growth trajectory and robust fundamentals. For investors seeking momentum, 3750.HK remains a Buy, with a base target of HK$770, but we advise accumulating on pullbacks given its extended technical positioning. CATL warrants a core position in any growth-oriented portfolio , offering a rare combination of world-class competitive advantage, a fortress balance sheet, and a valuation that is ripe for re-rating . Disclaimer: This content is generated by AI. While we strive to ensure accuracy, please use this information for educational purposes only.