Chinese Battery Giant CATL's Shares Rise on Solid Earnings

By Jiahui Huang

Shares of Contemporary Amperex Technology rose sharply in Hong Kong and Shenzhen, after the world's largest electric-vehicle battery maker reported solid third-quarter results.

The Chinese company's shares rose 3.2% in Shenzhen and 4.6% in Hong Kong early Tuesday, boosted by a 41% rise in third-quarter profit late Monday thanks to strong demand momentum in both its domestic and overseas markets.

CATL's net profit was 18.55 billion yuan, equivalent to $2.61 billion, up from 13.12 billion yuan a year earlier. Revenue rose 13% to 104.19 billion yuan.

The upbeat results came after the battery maker's Shenzhen-listed shares hit successive record highs in recent weeks. The stock is up more than 40% so far this year, buoyed by positive sentiment amid China's plan to boost energy storage and further support its auto industry. The company is viewed as a key beneficiary of the electric-vehicle sector's growth in China, thanks to its mature supply chain and competitive edge in advanced battery technology.

The Fujian-based company is also pressing ahead with plans to expand abroad. The company has said it would use most of the nearly $4.6 billion raised through its Hong Kong secondary listing for its Hungary factory. Uncertainties remain, however, amid renewed trade tensions between the U.S. and China.

For the nine months ended Sept. 30, CATL's revenue rose 9.3% from a year earlier to 283.07 billion yuan. Its net profit rose 36% year to 49.03 billion yuan over the same period.

The battery maker maintains a leading position in its home market of China. It held a 48% share of the EV-battery industry in September, according to data from the China Automotive Battery Innovation Alliance.

The Chinese company is also a top battery supplier for major automakers, counting Tesla, Volkswagen, BMW and Geely among its clients.

Analysts have said that they expect CATL to continue to deliver strong earnings in the coming years as its European shipments grow, the domestic pricing outlook brightens and operating efficiency improves.

Citi analysts project CATL will see 31% a growth in sales volume in 2026--a bullish take the figure is 15 percentage points above analysts' consensus forecast, they say in a note. They cite recent industry discussions indicating that CATL's production could grow up to 50% next year.

In addition to rapid revenue growth, CATL has an advantage in economies of scale, which result in lower costs and higher margins relative to its peers, Bernstein analysts wrote in a note.

Write to Jiahui Huang at jiahui.huang@wsj.com

(END) Dow Jones Newswires

October 20, 2025 23:41 ET (03:41 GMT)