Contemporary Amperex Technology Co Limited (CATL) reported record second-quarter profits, but the results fell short of market expectations as weakening demand for electric vehicles in China weighed on performance.
The world’s largest battery manufacturer posted net profit and revenue figures that narrowly missed consensus estimates of 23.4 billion yuan and 148.6 billion yuan, respectively, according to reports from the South China Morning Post.
Goldman Sachs had previously raised its price target for CATL by 50%, projecting record highs over the next 12 months based on accelerating demand and market share gains.
The miss underscores the intensifying pressure on China’s EV supply chain, where domestic sales growth has decelerated despite the broader global green energy boom.
While CATL’s international expansion and scale continue to drive record absolute earnings, the inability to meet elevated analyst forecasts signals that margin expansion may be slowing in the company’s home market.
This development adds nuance to the bullish outlook recently expressed by Wall Street.
Goldman Sachs had previously raised its price target for CATL by 50%, projecting record highs over the next 12 months based on accelerating demand and market share gains.