CATL booked faster profit growth in the second quarter, even as EV demand slowed in China while geopolitical tensions cast clouds over its overseas expansion.
Net profit jumped 13.4% from a year earlier to CNY12.36bn (US$1.7bn) in April-June, on a 13.2% drop in revenue to CNY87bn, according to Reuters calculations based on a stock filing.
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That compared with a UBS estimate of CNY10.41bn.
The revenue slide, for the third straight quarter, deepened from a 10.4% decline in the first quarter, Reuters noted.
CATL, which counted Tesla as its biggest battery buyer, commanded 46.4% of batteries in China made EVs in the first half, up 3% year on year while second ranked BYD and third-placed CALB saw their combined share shrink to 32%, according to data from the China Automotive Battery Innovation Alliance cited by Reuters.
In an analyst note in June cited by Reuters, Morningstar trimmed its total revenue estimates for CATL by 8-9% per year in 2024-33 and cut net profit forecasts by 7-8%, factoring in “geopolitical risk and potential business loss in the U.S. lithium battery market.”
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