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CATL Climbs as Chinese Battery Giant Expects Up to Threefold Gain in 2021 Profit
Dou Shicong
DATE:  Jan 28 2022
/ SOURCE:  Yicai
CATL Climbs as Chinese Battery Giant Expects Up to Threefold Gain in 2021 Profit CATL Climbs as Chinese Battery Giant Expects Up to Threefold Gain in 2021 Profit

(Yicai Global) Jan. 28 -- Shares of Contemporary Amperex Technology jumped after the Chinese battery giant said it expects net profit to have increased by as much as three times last year thanks to the rapid growth of the new energy vehicle market.

CATL [SHE: 300750] closed 3.1 percent higher at CNY592.60 (USD93.12) today, after earlier surging as much as 5 percent. The stock is up 0.8 percent so far this year.

Net profit is likely to come in at between CNY14 billion and CNY16.5 billion (USD2.2 billion and USD2.6 billion) in the year ended Dec. 31, up 150.8 percent to 195.5 percent from a year earlier, the Ningde-based company predicted late yesterday.

CATL said its increased market penetration rate in the NEV and battery storage arenas pushed up battery sales. The firm also said it made progress in market development, while new production capacity buoyed output and sales. Greater cost controls narrowed the cost of revenue ratio.

Listed Chinese companies usually report annual earnings between February and April. When expectations change significantly, they may release an unaudited forecast before the official report.

While CATL did not touch on revenue when updating its performance expectations for last year yesterday, income jumped 133 percent to CNY73.4 billion (USD11.5 billion) in the first nine months of 2021, according to the firm’s third-quarter earnings report. Net profit rose 131 percent to CNY7.8 billion in the period.

CATL is the world’s largest power battery manufacturer with an installed capacity of 79.8 gigawatt-hours and a market share of 31.8 percent in the first 11 months of last year, according to data from South Korean market research firm SNE Research.

Editor: Futura Costaglione

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Keywords:   CATL,Profit Growth