Contemporary Amperex Technology Co Ltd Class A

300750: XSHE (CHN)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	¥463.00	Xsrp	Rgybhgvn

CATL Earnings: In Line, Margin Recovery On Track

Vincent Sun

Apr 21, 2023

No-moat Contemporary Amperex Technology reported 83% revenue growth year over year in the first quarter. The margin recovery since the trough in the first quarter of last year remains on track, with a 6.8-percentage-point increase in the first-quarter gross margin from a year ago. With first-quarter revenue and net profit accounting for 21% and 24% of our full-year forecast, respectively, we consider the results in line with our expectation. As a result, we keep our financial forecast unchanged and keep our fair value estimate at CNY 433 per share, which implies a forward price/earnings ratio of 26 times.

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