China's CATL third-quarter profit growth slowest in nearly two years as competition intensifies (updated)

BYD

Tue 13:37

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BEIJING, Oct 20 (Reuters) - Net profit growth at China's CATL 300750.SZ slowed sharply in the third quarter, hit by fierce competition in the electric vehicle battery market as China's auto sales growth cooled.
Net profit at the world's largest EV battery maker rose 14.5% from a year earlier to 21.2 billion yuan ($3.17 billion), according to a stock exchange filing on Tuesday, well below analysts' estimate of a 41.2% increase based on LSEG SmartEstimate data
The third-quarter net profit growth, which follows a 36.5% rise in the second quarter, is the slowest in nearly two years
Revenue climbed 58.6% year-on-year to 165.2 billion yuan, undershooting forecasts for a 60.2% increase, after growing 56.9% in the previous quarter
The EV battery specialist on Tuesday unveiled a new generation of batteries for heavy-duty trucks and announced plans to expand its battery-swapping network
CATL, which broadened supplies to overseas automakers, accounted for 39.4% of global EV battery usage in the first eight months of the year, up from 37.7% a year earlier, while second-ranked BYD's 1211.HK 002594.SZ share slipped to 15.1% from 17.1%, industry data showed
CATL's share of China's power battery installation market fell to 40.9% in September from 49.8% in January, while BYD increased its share to 21.1% from 17.4%, according to industry data.
While China's domestic auto market extended a 12-month downturn in September, exports continued to support industry growth as manufacturers expanded abroad
CATL expects energy storage to contribute half of its global revenue by 2030, up from about a quarter currently, Reuters reported in June
($1 = 6.6779 Chinese yuan renminbi)

 (Reporting by Qiaoyi Li, Yukun Zhang, Zhang Yan and Ju-min Park; Editing by Louise Heavens)
 ((yukun.zhang@thomsonreuters.com;))