CATL's record 42% profit surge sends Hong Kong shares soaring 35%
Shares of CATL.L surged 35% in Hong Kong after the company reported a 42% jump in annual net profits. The rise to 72.2 billion yuan beat analyst forecasts and pushed the stock to its strongest intraday gain since September 2025. Investors are now watching whether the record premium over its mainland listing can hold.
The battery giant's latest earnings report revealed a 39.2% share of the global EV battery market. This dominance helped its market capitalisation outpace rivals like BYD by roughly $120 billion USD. As of March 2026, CATL.L's valuation stands near 1.903 trillion yuan, with monthly gains of 17.10% and a 9.05% rise year-to-date.
The Hong Kong-listed shares (H-shares) traded at a 46% premium over their mainland counterparts (A-shares), the widest gap on record. Offshore investors have driven this demand, betting on CATL.L's exposure to global energy diversification. Energy storage, which made up 15% of 2025 revenue, saw unit sales climb 29% year-over-year. Executives suggested energy storage could eventually match EV batteries as a revenue driver. This shift comes as higher oil prices and market volatility push more capital into alternative energy solutions. Meanwhile, Korean competitors lost market share in January 2026, further strengthening CATL.L's position.
The sharp rally has left analysts questioning whether the H-share premium is sustainable. CATL.L's strong earnings and market dominance have cemented its role as a leader in both EV batteries and energy storage. Investors continue to track its performance amid broader energy market fluctuations.
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