...July 30, 2024 EV-powered growth: Contemporary Amperex Technology Co. Ltd.'s (CATL) lithium-ion battery sales volume will likely grow 18%-23% in 2024 and 8%-13% in 2025 after a 21% year-on-year growth in the first half of 2024, by our estimate. Automakers' continuing transition to electric vehicle (EVs) and the company's expanding geographical reach will support such growth. Rise in revenue, margins: We anticipate CATL's revenue will see 1.3% growth in 2024. An increase in sales volume and stabilizing battery prices in the second half of 2024 will mitigate the impact of a 12% year-on-year revenue decline in the first half, mainly driven by lower material costs. The company's revenue will likely further grow 6.5% in 2025. We forecast CATL's EBITDA margin will rise to 23.2%-23.4% in 2024-2025, from 18.9% in 2023, due to a better product mix, economies of scale amid sales growth, and stringent cost control. Overseas drive: CATL's expanding battery exports and production scale in Europe should...
