Contemporary Amperex Technology Co., Limited Class H (3750) AI Stock Analysis

• Market Cap: HK$1.92T
• Dividend Yield: 0.21%
• Average Volume (3M): 2.47M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.63
• Revenue Growth: 5.28%
• EPS Growth: N/A
• Country: HK
• Employees: 131,988
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 4.47
• Shares Outstanding: 155,915,300
• 10 Day Avg. Volume: 2,151,963
• 30 Day Avg. Volume: 2,474,948
• PEG Ratio: 1.64
• Price to Book (P/B): 5.10
• Price to Sales (P/S): 3.48
• P/FCF Ratio: 18.29
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$596.90
• Price Target Upside: 15.68% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: HK$491.00 ▼(-4.84% Downside)

The overall stock score of 61 reflects strong financial performance, which is the most significant factor, indicating a stable and promising financial position. However, the technical analysis shows bearish momentum, and the valuation is unattractive due to the lack of P/E ratio and low dividend yield, which weigh down the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth reflects strong market demand and effective business strategies, supporting long-term expansion and profitability.

Cash Flow Generation

Strong cash flow generation enhances financial stability, enabling reinvestment in growth opportunities and providing a buffer against economic downturns.

Balance Sheet Health

A strong balance sheet with prudent leverage supports financial flexibility and resilience, allowing the company to capitalize on strategic opportunities.

Negative Factors

Margin Pressures

Declining margins can indicate rising costs or pricing pressures, which may impact profitability if not managed effectively over time.

Asset Utilization

Suboptimal asset utilization may limit return on investment and growth potential, requiring strategic adjustments to enhance efficiency.

Free Cash Flow to Net Income Ratio

A declining free cash flow to net income ratio may indicate increased capital expenditures, potentially straining cash reserves if not offset by revenue growth.

Contemporary Amperex Technology Co., Limited Class H Business Overview & Revenue Model

Company Description

Contemporary Amperex Technology Co., Limited (CATL) is a leading global manufacturer of lithium-ion batteries, primarily serving the electric vehicle (EV) and energy storage sectors. Founded in 2011 and headquartered in Ningde, China, CATL specializes in developing innovative battery technologies and solutions for various applications, including passenger and commercial vehicles, as well as renewable energy systems. The company is recognized for its commitment to sustainability and advanced research in battery materials and recycling processes.

How the Company Makes Money

CATL generates revenue primarily through the sale of lithium-ion battery cells and packs to major automotive manufacturers, including both domestic and international clients. The company's revenue model is supported by long-term supply agreements and partnerships with leading car manufacturers, which provide a steady demand for its products. Additionally, CATL has expanded its revenue streams by investing in energy storage systems for renewable energy applications, capitalizing on the growing demand for energy storage solutions. The company also engages in research and development, leading to the creation of more efficient and sustainable battery technologies, which further enhances its market position and profitability.

Contemporary Amperex Technology Co., Limited Class H Financial Statement Overview

Summary

Contemporary Amperex Technology Co., Limited Class H exhibits strong financial health with solid revenue growth, efficient operations, and robust cash flow generation. The company maintains a balanced capital structure with prudent leverage, supporting its growth trajectory. While there are minor pressures on margins and cash flow ratios, the overall financial position is stable and promising for future expansion.

Income Statement

The company demonstrates strong revenue growth with a TTM increase of 1.96%, indicating robust demand and market expansion. Gross profit margin remains healthy at 23.79%, and net profit margin has improved to 15.60%, reflecting efficient cost management. EBIT and EBITDA margins are solid, showcasing operational efficiency. However, the slight decline in gross profit margin from the previous year suggests potential cost pressures.

Balance Sheet

The balance sheet is strong with a manageable debt-to-equity ratio of 0.39, indicating prudent leverage use. Return on equity is impressive at 22.04%, highlighting effective use of shareholder funds. The equity ratio of 34.00% suggests a stable capital structure, though there is room for improvement in asset utilization.

Cash Flow

Cash flow performance is robust, with a 9.24% growth in free cash flow, indicating strong cash generation capabilities. The operating cash flow to net income ratio of 1.90 suggests efficient cash conversion. The free cash flow to net income ratio of 0.68 is healthy, though slightly below the previous year, pointing to increased capital expenditures or investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	374.13B	362.01B	400.92B	328.59B	130.36B	50.32B
Gross Profit	89.01B	88.49B	76.93B	66.54B	34.26B	13.97B
EBITDA	75.92B	90.21B	78.91B	51.16B	27.14B	12.34B
Net Income	58.36B	50.74B	44.12B	30.73B	15.93B	5.58B
Balance Sheet
Total Assets	867.18B	786.66B	717.17B	600.95B	307.67B	156.89B
Cash, Cash Equivalents and Short-Term Investments	372.78B	317.79B	264.31B	193.02B	90.44B	71.71B
Total Debt	114.22B	113.52B	118.15B	93.27B	50.49B	27.07B
Total Liabilities	542.79B	513.20B	497.28B	424.04B	215.04B	87.70B
Stockholders Equity	294.92B	246.93B	197.71B	164.48B	84.51B	64.21B
Cash Flow
Free Cash Flow	76.66B	68.89B	60.95B	14.02B	-620.69M	4.87B
Operating Cash Flow	114.13B	100.64B	94.60B	63.26B	42.42B	17.45B
Investing Cash Flow	-39.11B	-49.65B	-27.99B	-64.11B	-52.33B	-13.38B
Financing Cash Flow	20.79B	-16.79B	11.80B	81.87B	22.49B	34.52B

Contemporary Amperex Technology Co., Limited Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6198	79 Outperform	HK$59.27B	7.99	12.29%	5.28%	3.68%	7.86%
2618	73 Outperform	HK$83.45B	11.54	12.40%	―	11.05%	81.01%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9676	62 Neutral	HK$14.46B	39.10	5.56%	2.58%	―	―
3750	61 Neutral	HK$1.92T	―	23.60%	0.21%	5.28%	―
3931	61 Neutral	HK$54.48B	62.49	2.28%	―	16.36%	102.93%
2225	51 Neutral	HK$6.35B	―	-67.70%	―	-33.94%	-119.13%

Contemporary Amperex Technology Co., Limited Class H Corporate Events

Contemporary Amperex Technology Announces Governance Amendments and Leadership Changes

Contemporary Amperex Technology Co., Limited has announced proposed amendments to its Articles of Association and certain company systems to align with new regulatory requirements and reflect changes in its capital structure. These amendments, pending shareholder approval, aim to enhance the company’s corporate governance framework. Additionally, the company announced a change in its board of directors, with Mr. Zhao Fenggang resigning as an executive director and Mr. Wu Yingming being proposed for appointment, highlighting a strategic shift in leadership to support its evolving business operations.

Contemporary Amperex Technology Announces EGM Schedule

Contemporary Amperex Technology Co., Limited has announced the schedule for its upcoming extraordinary general meeting (EGM) to be held on December 25, 2025, in Ningde City, Fujian Province, China. The meeting will determine shareholder entitlements and voting rights, with the register of members closed from December 19 to December 24, 2025. This announcement is significant for stakeholders as it outlines the procedural details necessary for participation in the EGM, potentially impacting shareholder decisions and company governance.

Contemporary Amperex Technology Co., Limited Forms Audit Committee to Strengthen Governance

Contemporary Amperex Technology Co., Limited has established an Audit Committee to enhance the decision-making capabilities of its Board of Directors. This move aims to improve corporate governance by ensuring effective supervision over senior management and facilitating accurate financial reporting. The committee will consist of three non-executive directors, including at least two independent directors with financial expertise, to oversee internal and external audits and support the company’s internal controls.

Contemporary Amperex Technology Co., Limited Forms Nomination Committee to Strengthen Governance

Contemporary Amperex Technology Co., Limited has established a Nomination Committee to enhance its corporate governance structure. This committee will be responsible for recommending candidates for the Board of Directors and senior management, ensuring a democratic and efficient election process. The committee’s formation aligns with relevant laws and regulations, and it will consist of three members, including independent directors, to maintain a balanced and diverse board composition.

Contemporary Amperex Technology Announces Board Composition

Contemporary Amperex Technology Co., Limited announced the composition of its board of directors and the roles within its four board committees. This announcement underscores the company’s commitment to robust governance and strategic oversight, which is crucial for maintaining its leadership position in the competitive energy storage industry.

CATL Expands Indonesian Operations with $131 Million Equipment and Services Purchase

Contemporary Amperex Technology Co., Limited has announced a significant Equipment and Services Purchase Agreement to support its overseas battery plant in Indonesia. The agreement, involving CATL HK and CATI, outlines the purchase of battery production equipment and related onsite services by CATIB, a connected subsidiary. This strategic move, valued at over $131 million, is expected to enhance CATL’s operational capabilities in Indonesia, potentially strengthening its position in the global battery market. The transactions are subject to reporting and announcement requirements under the Hong Kong Listing Rules but are exempt from independent shareholders’ approval.

Contemporary Amperex Technology Reports Strong Q3 2025 Financial Performance

Contemporary Amperex Technology Co., Limited reported a significant increase in its financial performance for the third quarter of 2025, with revenue rising by 12.90% and net profit attributable to shareholders increasing by 41.21% compared to the same period last year. The company’s total assets grew by 13.91% since the end of last year, indicating strong operational growth and enhanced market positioning, which could positively impact stakeholders and reinforce its leadership in the energy storage industry.

Contemporary Amperex Technology Schedules Board Meeting for Q3 Results

Contemporary Amperex Technology Co., Limited has announced that it will hold a board meeting on October 20, 2025, to review and approve the company’s third-quarter financial results for the period ending September 30, 2025. This meeting is significant as it will provide insights into the company’s financial health and performance, potentially impacting its market position and stakeholder confidence.