Research Update: China-Based Contemporary Amperex Technology Assigned 'BBB+' Rating With Stable Outlook; Proposed Bonds Rated 'BBB+'

Contemporary Amperex Technology Co. Ltd. (CATL) is one of the world's leading lithium-ion motive battery manufacturers with a market share of 48% in China in the first seven months of 2020 and 23.5% globally in the first half of the year. It reported Chinese renminbi (RMB) 46 billion in revenue and RMB10 billion in EBITDA in 2019. CATL's continual product upgrades, improving operating efficiency, and cost-cutting efforts should help it to sustain above-industry-average profitability despite potentially lower average selling prices (ASP) for batteries. The China-based company's recently strengthened cash balance and anticipated strong operating cash flow should provide sufficient financial headroom for its ongoing high capital expenditure (capex) and research and development (R&D) spending in the next couple of years.

...- Contemporary Amperex Technology Co. Ltd. (CATL) is one of the world's leading lithium-ion motive battery manufacturers with a market share of 48% in China in the first seven months of 2020 and 23.5% globally in the first half of the year. It reported Chinese renminbi (RMB) 46 billion in revenue and RMB10 billion in EBITDA in 2019. - CATL's continual product upgrades, improving operating efficiency, and cost-cutting efforts should help it to sustain above-industry-average profitability despite potentially lower average selling prices (ASP) for batteries. - The China-based company's recently strengthened cash balance and anticipated strong operating cash flow should provide sufficient financial headroom for its ongoing high capital expenditure (capex) and research and development (R&D) spending in the next couple of years. - On Sept. 7, 2020, S&P Global Ratings assigned its '###+' long-term issuer credit rating to CATL and its '###+' long-term issue rating to the company's proposed guaranteed...

Research Update