CATL Returns 19.37 Million Shares to Treasury as Brokerages Rethink the Growth Story

CATL has bought back 19.37 million A-shares between September 11 and Wednesday, the battery maker disclosed in a regulatory filing. Wednesday alone accounted for 0.87 million shares, acquired for RMB 199.98 million. The repurchase programme has unfolded against a backdrop of disappointing quarterly figures and mounting competitive pressure that has weighed on the stock.

A Quarter That Missed on Both Lines

For the third quarter of 2026, CATL reported an unaudited net profit of RMB 21.2 billion, up 14.5% year on year. Revenue climbed 58.6% to RMB 165.2 billion. Neither figure cleared what analysts had pencilled in — consensus had pointed to profit growth of 41.2%. Reuters described the earnings expansion as the weakest in nearly two years, pointing to fiercer competition in batteries and slower growth in Chinese car sales. The shortfall triggered a sharp slide in the share price, with the disappointing results, intensifying battery-market rivalry and softer vehicle demand all cited as triggers. By Friday the stock had recovered some ground, adding 1.7%.

Morgan Stanley Steps Back, UOB Trims Its Numbers

Morgan Stanley downgraded CATL's H-shares to "In-Line" on Tuesday, according to media reports, and cut its price target by 44.7% to HK$390. UOB Kay Hian had moved two days earlier, on October 22, keeping its buy recommendation on the A-shares but lowering its target to RMB470.00 from RMB585.00. The Singapore-based house also trimmed its net profit forecasts for 2026 through 2028, by 5%, 10% and 16% respectively, expecting CATL to absorb part of higher taxes.

Swapping Batteries, Not Chemistries

While the analysts were marking down their models, CATL pressed ahead on the product front. Reuters reported on October 21 that the company unveiled its Tianxing II battery platform, with plans for 900 battery-swap stations for heavy trucks across China by year-end and 2,000 by 2027. The passenger-car side is expanding through partnerships: on October 22, CATL reportedly agreed with Beijing Automotive Group to develop a swap system serving one million vehicles, with BAIC contributing compatible models to the Choco-Swap network and supporting station roll-out through its dealerships. On the technology roadmap, CATL told investors on Tuesday that work on all-solid-state batteries remains on schedule, with small-series production targeted for 2027.