CATL stock rises after strong profit alert

By Clarence Leong


Shares of Contemporary Amperex Technology Co. rose Tuesday morning after the electric vehicle battery maker said it expected third-quarter net profit to more than double from a year earlier. .

Shenzhen-listed CATL stock gained 4.6% to CNY410.96, heading for its biggest one-day percentage gain in two months. The gain helps trim its year-to-date losses to 30%.

China’s biggest battery maker posted net profit of 8.80 billion yuan ($1.23 billion) – 9.80 billion yuan in the third quarter, compared with 3.27 billion yuan in the same period last year, he said in a Monday night filing.

CATL attributed the expected increase in profit to a sustained expansion in the battery and energy storage markets, while production and sales volumes also increased significantly.

Daiwa Capital Markets analysts Kelvin Lau and Bintuo Ni said in a note that the guidance is in line with expectations and shows CATL “could maintain profitability following a recovery in gross margin in 2Q22.” They forecast that CATL’s gross margin in the third quarter likely improved further from the second quarter.

For the first nine months of the year, CATL forecasts a net profit of CNY 16.50 billion to CNY 18.00 billion, compared to CNY 7.75 billion the previous year.


Write to Clarence Leong at [email protected]

Comments are closed.