China's CATL third-quarter profit growth slowest in nearly two years as competition intensifies

By Reuters News

BEIJING, Oct 20 (Reuters) - Net profit growth at China's CATL 300750.SZ slowed sharply in the third quarter, hit by fierce competition in the electric vehicle battery market as China's auto sales growth cooled.

  • Net profit at the world's largest EV battery maker rose 14.5% from a year earlier to 21.2 billion yuan ($3.17 billion), according to a stock exchange filing on Tuesday, well below analysts' estimate of a 41.2% increase based on LSEG SmartEstimate data

  • The third-quarter net profit growth, which follows a 36.5% rise in the second quarter, is the slowest in nearly two years

  • Revenue climbed 58.6% year-on-year to 165.2 billion yuan, undershooting forecasts for a 60.2% increase, after growing 56.9% in the previous quarter

  • The EV battery specialist on Tuesday unveiled a new generation of batteries for heavy-duty trucks and announced plans to expand its battery-swapping network

  • CATL, which broadened supplies to overseas automakers, accounted for 39.4% of global EV battery usage in the first eight months of the year, up from 37.7% a year earlier, while second-ranked BYD's 002594.SZ share slipped to 15.1% from 17.1%, industry data showed

  • CATL's share of China's power battery installation market fell to 40.9% in September from 49.8% in January, while BYD increased its share to 21.1% from 17.4%, according to industry data.

  • While China's domestic auto market extended a 12-month downturn in September, exports continued to support industry growth as manufacturers expanded abroad

  • CATL expects energy storage to contribute half of its global revenue by 2030, up from about a quarter currently, Reuters reported in June

($1 = 6.6779 Chinese yuan renminbi)

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