CATL Profit Soars 42.3% to RMB 72.2B, Shares Gain Over 9%
Contemporary Amperex Technology Co. Limited (CATL) reported a standout financial performance for 2025, with net profit attributable to shareholders increasing 42.3% year-over-year to RMB 72.2 billion. The world's largest electric vehicle battery manufacturer saw its revenue grow 17% to RMB 423.7 billion, a result that significantly beat market expectations. The strong performance reflects both robust global demand and the company's strong operational efficiency.
The results ignited investor confidence, sending CATL's Hong Kong-listed shares (03750.HK) up 7.89%. The primary driver for the earnings beat was a nearly 40% year-over-year increase in lithium battery shipments, which totaled approximately 661 gigawatt-hours. This growth underscores CATL's expanding footprint in the electric vehicle and energy storage markets, where it is a critical supplier to major automakers like Tesla.
CICC Lifts 2026 Profit Forecast to RMB 96B, Citing Capacity Growth
In response to the strong earnings report, investment bank CICC raised its 2026 net profit forecast for CATL by 9.1% to RMB 95.98 billion. Analysts attributed the upward revision to the anticipated release of new production capacity in 2026 and potential battery price increases that could further improve unit profitability. CICC also introduced a 2027 earnings forecast of RMB 120.22 billion, signaling confidence in sustained long-term growth.
Reflecting this bullish outlook, CICC increased its target price for CATL's H-shares by 12.1% to HKD 650 while reaffirming its "Outperform" rating. The revision positions the bank's valuation significantly above the stock's current trading levels and points to substantial expected upside, solidifying CATL's status as a bellwether for the global new-energy sector.
