CATL’s net profit in the third quarter was 1.42 billion, a positive increase for the first time this year

On October 27th, CATL announced its 2020 third quarter results report. In the quarter, revenue was 12.693 billion yuan, a year-on-year increase of 0.8%; net profit was 1.420 billion yuan, a year-on-year increase of 4.24%; in the first three quarters of this year, CATL’s revenue was 31.522 billion yuan, a year-on-year decrease of 4.06%; net profit was 3.357 billion yuan, a year-on-year decrease 3.10%. This is the first time this year that CATL has achieved a positive quarterly rise. The 2020 semi-annual report released by CATL on August 26 shows that during the reporting period, the company achieved total operating income of 18.829 billion yuan, a year-on-year decrease of 7.08%, and net profit attributable to shareholders of listed companies was 1.937 billion yuan, a year-on-year decrease. 7.86%. CATL believes that the main reason for the decline in performance is that the macro economy has been affected by the new crown virus pneumonia epidemic and the severe decline in market demand has caused the production and sales of new energy vehicles to drop significantly year-on-year, and the company's power lithium battery sales revenue has decreased. CITIC Securities Research Report believes that CATL’s third-quarter results are in line with expectations. The mid-to-long-term trend of electrification at home and abroad is obvious, the overseas economy is picking up, and high-end power lithium batteries continue to be in short supply. As a leading global power lithium battery company, it deeply binds domestic mainstream electric vehicle companies; at the same time, it provides comprehensive and in-depth support for overseas giant customers such as Tesla. The company has a high degree of certainty in its growth, continues to empower its capital operation, and has long-term allocation value. It will continue to recommend and maintain its 'Buy' rating. Although it is favored by related organizations, Ningde era will continue to work hard from its own perspective and external competition, and cannot relax! From its own point of view, in the first three quarters, CATL provided about 1.014 billion yuan in asset and credit impairment for accounts receivable bad debt provision, survival depreciation provision, and fixed asset impairment provision. Among them, the provision for bad debts of accounts receivable is nearly 200 million yuan. This directly affected the total profit of the Ningde era in the first three quarters. Soochow Securities Research Report believes that CATL adopts prudent accounting principles, and its revenue and profits in the third quarter are stable. The large impairment provision drags down the growth rate and affects apparent profit; CATL’s market share declined slightly in the third quarter. The impact of the increase in LPG (for LG) and the recovery of BYD's sales, it is expected that the share of the iron-lithium version of Tesla supporting the Ningde era is expected to rise in the fourth quarter. Currently, CATL is actively expanding production. According to the financial report, “the company has increased investment in production construction and strategic investment.” CATL’s net cash flow from investment activities in the first three quarters was 8.58 billion yuan; for “new production and new investment”, CATL’s net cash flow in the first three quarters The value of construction projects was 5.656 billion yuan, an increase of 183.3% from the end of last year. As of September 30, the construction in progress of the CATL was 5.656 billion yuan, an increase of 183.3% from the end of last year. In terms of external competition, just as the Ningde era is expanding on a large scale, many foreign companies have also entered the Chinese market in large numbers because of the publication of the 'Catalogue of Industries Encouraging Foreign Investment' to grab the 'soup' of the domestic battery market. Among them, LG Chem is the most typical. From 2017 to 2019, CATL is the global leader in power lithium batteries for three years. However, SNEResearch data from January to July shows that CATL ranks second in the world with 12.7GWh installed capacity, and LG Chem ranks first in the world with 13.4GWh installed capacity. However, data released by South Korea’s SNEResearch on October 5 showed that in August, CATL once again ranked first in the world with an installed capacity of 2.8GWh, and LG Chem and Panasonic ranked second and third. According to statistics from Zhejiang Business Research Institute, CATL currently produces 60GWh, and plans to expand production by 52GWh in Sichuan, Jiangsu and Ningde plants before 2023. LG Chem’s output is 70GWh and plans to expand its production by another 50GWh before the end of 2021. The competition between CATL and LG Chem in the power lithium battery market will continue and will become increasingly fierce. In short, under the influence of multiple factors, CATL’s performance in the third quarter has improved, but compared to 2019 revenue of 45.788 billion yuan, an increase of 54.63% over the previous year; net profit of 4.56 billion yuan, an increase of 34.64% year-on-year, is still There is a gap. Of course, it also means that there is more room for improvement. Disclaimer: Some pictures and content of articles published on this site are from the Internet. If there is any infringement, please contact to delete. Previous: How to use and charge lithium batteries correctly?