Chinese EV battery maker CATL expects 2023 profit to jump as much as 48 per cent as it maintains huge advantage over rivals
- The world’s largest EV battery manufacturer expects net profit for 2023 to have climbed by as much as 48 per cent
- ‘CATL has maintained its advantage over smaller domestic rivals,’ Soochow Securities said in a research note
Its fourth-quarter profit, which is derived by comparing the full-year earnings estimate and its nine-month results published in October, would be 11.35 billion yuan to 14.35 billion yuan, an increase of 8.9 per cent to 37.6 per cent from the previous three months.
“Rising sales volume in tandem with lower production costs boosted its profitability in the fourth quarter,” Soochow Securities said in a research note on Wednesday. “CATL has maintained its advantage over smaller domestic rivals.”
The EV battery maker reported an unexpected quarter-on-quarter profit drop of 4.3 per cent in the three months ending September 30, owing to a currency exchange loss caused by a volatile Chinese yuan.
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CATL, which had a 37.4 per cent share of the global market with an output of 233.4 gigawatt-hours (GWh) of batteries in the first 11 months of 2023, sold 40 per cent of its products outside mainland China.