CALB Battery Cell Lacks Adequate Output; Certain Huawei Luxeed Models Transition to CATL Batteries: Report
Battery Supply Issues: CALB is facing insufficient battery cell output, leading to a decline in its stock price by 5.36%, while CATL is supplying batteries for some Luxeed models, which previously used CALB batteries.
Performance Standards: Both CALB and CATL batteries meet Huawei's 'Giant Whale' battery platform standards, ensuring consistent performance, lifespan, and warranty policies despite the brand switch.
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UBS Raises CATL's Target Price to HKD660, Highlighting Cost and Technological Advantages for Growth Potential
CATL's Competitive Advantage: A UBS report highlights that CATL maintains a cost-competitive edge in battery production both domestically and internationally, despite higher costs for batteries produced in Hungary compared to China.
Growth Opportunities: UBS believes that CATL's leadership in cost, scale, and technology positions the company well for growth amid the increasing electrification of electric vehicles and energy storage systems.
Target Price Adjustment: UBS has raised its target price for CATL from HKD640 to HKD660, maintaining a Buy rating on the stock.
Short Selling Data: As of February 9, 2026, CATL has reported short selling of $183.03 million, with a short selling ratio of 24.536%.
HSI Drops 325 Points or 1.2% as AIA Declines Over 5%; NIO-SW Rises Approximately 7%
Market Performance: The HSI fell 325 points (1.2%) to close at 26,559, with the HSCEI and HSTECH also experiencing declines of 0.7% and 1.1%, respectively, amid a total market turnover of $247.865 billion.
Financial Sector Decline: Major financial stocks like HSBC and AIA saw significant drops of 2.7% and 5.5%, respectively, with short selling ratios indicating increased bearish sentiment.
Volatile Commodities Market: The commodities sector faced volatility, with stocks like CHI SILVER GP and MMG declining over 3%, while jewelry stock LAOPU GOLD also lost 2.32%.
Automakers' Gains: In contrast, automakers such as BYD and NIO saw gains, with NIO rising 6.9% after announcing its first profit, while battery stock CATL increased by 1.8%.
Citi Anticipates Higher Commodity Prices Will Favor Basic Materials While Straining Auto and Mid-Tier Battery Firms
Commodity Price Impact: Commodity prices have risen significantly, benefiting the basic materials sector in China, particularly suppliers of aluminum, copper, and lithium, with positive ratings for companies like CHALCO and MMG.
Automakers Under Pressure: Rising material costs are expected to increase the production costs for mass-market electric vehicles, with smaller automakers like XPENG and GAC GROUP being more vulnerable compared to larger firms like BYD and Geely.
Battery Industry Outlook: Short-term challenges are anticipated for second-tier battery companies, while CATL is expected to maintain a strong position due to its bargaining power and upcoming production resumption.
Tech Sector Challenges: Xiaomi may face margin pressures from increasing memory costs, which significantly impact the bill of materials for its smartphones, potentially affecting profitability.
S&P Global Market Intelligence Reveals Recent Top 10 Most Shorted Stocks in Hong Kong
Top Shorted Stocks in Hong Kong: S&P Global Market Intelligence identified the ten most shorted stocks in Hong Kong, with metrics including the number of shares borrowed and short selling ratios.
Notable Stocks: Key stocks include Ping An with a short selling ratio of 39.57%, COSCO Ship Hold at 23.71%, and Hengrui Pharma at 18.79%, reflecting significant investor skepticism.
Market Trends: The report indicates a mixed performance in stock prices over the past week, with some stocks experiencing gains while others faced declines.
Market Insights: Analysts, including those from M Stanley, suggest that the recent uptrend in the Chinese property sector may not be sustainable, predicting potential declines in home sales and prices.
CATL Enters Strategic Partnership with Yunnan Focused on Green Energy and Transportation
Strategic Cooperation Agreement: CATL has signed a Comprehensive Strategic Cooperation Agreement with the Yunnan Provincial People's Government, initiating in-depth collaboration in areas such as green power and advanced manufacturing.
Focus on Green Energy: The partnership aims to enhance the development of green energy, electrification of transportation, and the establishment of charging and battery swapping infrastructure across Yunnan.
CATL Partners with Schroders Greencoat to Create European Battery Storage Initiative
Strategic Partnership: Schroders Greencoat and Lochpine Capital have formed a strategic memorandum with CATL to develop a European battery storage platform.
Battery Supply Agreement: Under the partnership, CATL will provide batteries for joint exploration, development, and investment in European battery storage projects.
UBS Raises CATL's Target Price to HKD660, Highlighting Cost and Technological Advantages for Growth Potential
CATL's Competitive Advantage: A UBS report highlights that CATL maintains a cost-competitive edge in battery production both domestically and internationally, despite higher costs for batteries produced in Hungary compared to China.
Growth Opportunities: UBS believes that CATL's leadership in cost, scale, and technology positions the company well for growth amid the increasing electrification of electric vehicles and energy storage systems.
Target Price Adjustment: UBS has raised its target price for CATL from HKD640 to HKD660, maintaining a Buy rating on the stock.
Short Selling Data: As of February 9, 2026, CATL has reported short selling of $183.03 million, with a short selling ratio of 24.536%.
HSI Drops 325 Points or 1.2% as AIA Declines Over 5%; NIO-SW Rises Approximately 7%
Market Performance: The HSI fell 325 points (1.2%) to close at 26,559, with the HSCEI and HSTECH also experiencing declines of 0.7% and 1.1%, respectively, amid a total market turnover of $247.865 billion.
Financial Sector Decline: Major financial stocks like HSBC and AIA saw significant drops of 2.7% and 5.5%, respectively, with short selling ratios indicating increased bearish sentiment.
Volatile Commodities Market: The commodities sector faced volatility, with stocks like CHI SILVER GP and MMG declining over 3%, while jewelry stock LAOPU GOLD also lost 2.32%.
Automakers' Gains: In contrast, automakers such as BYD and NIO saw gains, with NIO rising 6.9% after announcing its first profit, while battery stock CATL increased by 1.8%.
Citi Anticipates Higher Commodity Prices Will Favor Basic Materials While Straining Auto and Mid-Tier Battery Firms
Commodity Price Impact: Commodity prices have risen significantly, benefiting the basic materials sector in China, particularly suppliers of aluminum, copper, and lithium, with positive ratings for companies like CHALCO and MMG.
Automakers Under Pressure: Rising material costs are expected to increase the production costs for mass-market electric vehicles, with smaller automakers like XPENG and GAC GROUP being more vulnerable compared to larger firms like BYD and Geely.
Battery Industry Outlook: Short-term challenges are anticipated for second-tier battery companies, while CATL is expected to maintain a strong position due to its bargaining power and upcoming production resumption.
Tech Sector Challenges: Xiaomi may face margin pressures from increasing memory costs, which significantly impact the bill of materials for its smartphones, potentially affecting profitability.
S&P Global Market Intelligence Reveals Recent Top 10 Most Shorted Stocks in Hong Kong
Top Shorted Stocks in Hong Kong: S&P Global Market Intelligence identified the ten most shorted stocks in Hong Kong, with metrics including the number of shares borrowed and short selling ratios.
Notable Stocks: Key stocks include Ping An with a short selling ratio of 39.57%, COSCO Ship Hold at 23.71%, and Hengrui Pharma at 18.79%, reflecting significant investor skepticism.
Market Trends: The report indicates a mixed performance in stock prices over the past week, with some stocks experiencing gains while others faced declines.
Market Insights: Analysts, including those from M Stanley, suggest that the recent uptrend in the Chinese property sector may not be sustainable, predicting potential declines in home sales and prices.
CATL Enters Strategic Partnership with Yunnan Focused on Green Energy and Transportation
Strategic Cooperation Agreement: CATL has signed a Comprehensive Strategic Cooperation Agreement with the Yunnan Provincial People's Government, initiating in-depth collaboration in areas such as green power and advanced manufacturing.
Focus on Green Energy: The partnership aims to enhance the development of green energy, electrification of transportation, and the establishment of charging and battery swapping infrastructure across Yunnan.
CATL Partners with Schroders Greencoat to Create European Battery Storage Initiative
Strategic Partnership: Schroders Greencoat and Lochpine Capital have formed a strategic memorandum with CATL to develop a European battery storage platform.
Battery Supply Agreement: Under the partnership, CATL will provide batteries for joint exploration, development, and investment in European battery storage projects.
