In a recently published research report, UBS highlighted that CATL’s first-quarter performance for the current year outstripped forecasts. The company reported a 49% year-on-year surge in net profit, reaching RMB 20.7 billion, despite experiencing a 10% sequential decline. This figure accounts for 23% of the full-year projections set by both UBS and the broader market. When adjusting for non-recurring items, the net profit climbed by 53% year-on-year to RMB 18.1 billion. UBS has set a target price of RMB 500 for CATL’s A-shares and continues to recommend a 'Buy' stance, expecting further details on battery developments to emerge at the upcoming Super Tech Day on the 21st of this month. Company management indicated that order volumes for April and May remain robust, predicting that capacity utilization rates for the first and second quarters will sustain at a high level, ranging from 85% to 90%. Although no proactive price adjustments were made in the first quarter, gross margins in the second quarter might see a year-on-year decrease due to escalating commodity costs and a high base effect from the previous year. However, the company anticipates that it can effectively pass on most of the fluctuations in raw material costs.