3Q23: Results Came As Mixed Bag
CATL’s 3Q23 results came as a mixed bag with revenue miss, EBIT beat and net profit miss. Net profit came in at Rmb10.43b (+11% yoy/-4% qoq), 5% below our estimate. The 3Q23 earnings miss lies in revenue and forex loss. Looking ahead, CATL’s earnings will be driven by its strong product pipeline, decline in lithium carbonate prices and the ramp-up of upstream lithium projects. We keep 2023-25 EPS estimates unchanged. Maintain BUY and target price at Rmb410.00.
RESULTS
- Contemporary Amperex Technology’s (CATL) 3Q23 results came as a mixed bag with revenue miss, EBIT beat and net profit miss. 3Q23 net profit came in at Rmb10.43b (+11% yoy/-4% qoq), 5% below our estimate of Rmb11b. The slight earnings miss lies in revenue miss and the unexpected forex loss, which were partly offset by the margin improvement.
- 3Q23 revenue came in at Rmb105.4b (+8% yoy/+5% qoq), missing estimates, due to the rebate policy. Additionally, CATL’s market share in China dropped to below 40% in Sep 23 due to the production halt of Tesla Model 3 for production line revamping and the rise of second-tier battery makers. On the other hand, CATL’s share in the European market rose 8ppt yoy to 35% in 3Q23. The sales volume of batteries in 3Q23 was 100GWh, in line with expectations, of which 80% were automotive power batteries and the rest energy storage batteries.
