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

• Market Cap: HK$1.89T
• Dividend Yield: 0.24%
• Average Volume (3M): 2.06M
• Price to Earnings (P/E): 38.9
• Beta (1Y): 1.09
• Revenue Growth: -1.41%
• EPS Growth: N/A
• Country: HK
• Employees: 131,988
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 3.95
• Shares Outstanding: 155,915,300
• 10 Day Avg. Volume: 2,676,919
• 30 Day Avg. Volume: 2,055,953
• 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$444.63
• Price Target Upside: -11.52% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 72 Outperform
• Price Target: HK$516.00 ▲(2.69% Upside)

The stock score is primarily driven by strong financial performance, indicating robust growth and operational efficiency. Technical analysis suggests bullish momentum, though caution is advised due to overbought signals. Valuation is limited by the absence of a P/E ratio and a low dividend yield, which slightly dampens the overall score.

Positive Factors

Strong Financial Health

CATL's strong financial health, characterized by solid revenue growth and efficient operations, supports its growth trajectory and long-term stability.

Robust Cash Flow Generation

Strong cash generation capabilities indicate CATL's ability to fund operations, invest in growth opportunities, and maintain financial flexibility.

Competitive Advantage in Battery Technology

CATL's focus on innovation in battery technology positions it as a key supplier to major automotive manufacturers, ensuring sustained demand and market leadership.

Negative Factors

Revenue Growth Decline

A decline in revenue growth could signal challenges in market expansion or demand, potentially impacting long-term financial performance.

Margin Pressures

Decreasing gross profit margins suggest rising costs or pricing pressures, which could affect profitability if not managed effectively.

Increased Capital Expenditures

Higher capital expenditures may strain cash flow, potentially limiting CATL's ability to invest in new opportunities without impacting financial stability.

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

Company Description

Contemporary Amperex Technology Co., Limited engages in the development, production, sale, and energy storage batteries and systems worldwide. It offers EV batteries, such as battery cells, battery modules/racks, and battery packs; ESS batteries comprise battery cells, battery racks, containers, and other systems; and battery material products, which includes lithium compounds, precursors, and cathode materials, as well as battery recycling and after-sales services. The company's products are used in passenger vehicles, road passenger transportation, urban delivery, heavy-duty transport, urban street cleaning, construction, two-wheeled vehicles, vessels, special vehicles, front-of-the-meter energy storage system, and behind-the-meter energy storage system, as well as emerging applications, such as machinery, vessels, aircraft, and other applications. The company was incorporated in 2011 and is headquartered in Ningde, China.

How the Company Makes Money

CATL generates revenue through the production and sale of lithium-ion battery systems for electric vehicles, which constitute the majority of its business. The company partners with numerous global automotive manufacturers, providing them with advanced battery solutions tailored to their specific needs. In addition to EV batteries, CATL also supplies batteries for energy storage systems and other applications, extending its market reach. Strategic partnerships and joint ventures with automotive giants and technology firms further bolster its revenue streams, ensuring a steady demand for its products. The company's focus on research and development enables it to maintain a competitive advantage and meet the evolving needs of the clean energy market.

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	83 Outperform	59.14B	8.03	12.32%	4.65%	6.46%	8.38%
3750	72 Outperform	HK$1.89T	38.87	23.60%	0.24%	-1.41%	―
3931	72 Outperform	50.09B	57.45	1.68%	―	16.36%	102.93%
2618	70 Outperform	92.84B	12.84	11.20%	―	11.05%	81.01%
9676	65 Neutral	15.64B	43.21	5.75%	2.16%	0.00%	0.00%
2225	43 Neutral	5.82B	-43.65	-56.48%	―	-33.94%	-119.13%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Contemporary Amperex Technology Co., Limited Class H Corporate Events

Contemporary Amperex Technology Announces 2025 Interim Results and Dividend Plan

Contemporary Amperex Technology Co., Limited announced its unaudited interim results for the first half of 2025, highlighting a cash dividend distribution plan for its shareholders. The interim dividend will be paid in Renminbi for A Shares and in Hong Kong dollars for H Shares, with specific details on the distribution and register closure provided. This announcement underscores the company’s commitment to rewarding its shareholders and maintaining transparency in its financial operations.

The most recent analyst rating on (HK:3750) stock is a Buy with a HK$451.00 price target. To see the full list of analyst forecasts on Contemporary Amperex Technology Co., Limited Class H stock, see the HK:3750 Stock Forecast page.

Contemporary Amperex Technology Announces Interim Dividend for 2025

Contemporary Amperex Technology Co., Limited has announced an interim dividend of RMB 10.07 per 10 shares for the six months ending June 30, 2025, which will be paid in Hong Kong dollars at an exchange rate of RMB 1 to HKD 1.0966. The announcement highlights the company’s commitment to returning value to shareholders and may positively impact investor sentiment, reflecting its stable financial performance and strategic positioning in the energy sector.

The most recent analyst rating on (HK:3750) stock is a Buy with a HK$451.00 price target. To see the full list of analyst forecasts on Contemporary Amperex Technology Co., Limited Class H stock, see the HK:3750 Stock Forecast page.

Contemporary Amperex Technology Schedules Board Meeting to Discuss Interim Results

Contemporary Amperex Technology Co., Limited has announced a board meeting scheduled for July 30, 2025, to review and approve the interim financial results for the first half of the year and discuss the potential distribution of an interim dividend. This meeting is significant as it will provide insights into the company’s financial health and strategic direction, potentially impacting its market position and stakeholder interests.

The most recent analyst rating on (HK:3750) stock is a Buy with a HK$451.00 price target. To see the full list of analyst forecasts on Contemporary Amperex Technology Co., Limited Class H stock, see the HK:3750 Stock Forecast page.