Aijian Securities: Initiates "Buy" Rating on CATL, Technological Leadership + Scale Advantages Forge High Cost-Performance

Aijian Securities' research report points out that concerns over CATL's earnings decline have been exaggerated, and its technological leadership plus scale advantages create high cost-effectiveness. The company's technological leadership, supply chain control capability, and scale advantages forge its moat, and it currently offers high cost-effectiveness. 1) CATL's supply chain control capability is significantly ahead, boosting the company's profits; 2) Under automakers' demand for supply chain diversification, CATL's momentum for share gains will be weakened, but its technological advantages will still support the solidity of its industry position. In addition, the company drives up ROE with its leading net profit margin attributable to the parent as the core, demonstrating the company's sustainable, high-quality profitability; 3) We believe the current market's concerns about demand decline and overcapacity have been exaggerated, and the company currently offers good value for money. We believe CATL has gradually improved its upstream raw material layout through self-mining, equity participation, and other means, with a comprehensive layout in areas such as lithium mining resources, cathodes and anodes, and it engaged in lithium resource recycling early, which can effectively curb the negative impact of raw material price fluctuations. Considering the company's scale and technological leadership advantages, its supply chain control capability further strengthens its profitability. The company's PE for 2026-2028 is lower than the average of comparable companies. First coverage, assign a "Buy" rating.