In today’s briefing:
- CATL Launches Hong Kong Secondary Listing to Fund European Expansion
- CATL IPO (Hong Kong) Valuation Analysis
- CATL H Share Listing: The Investment Case
CATL Launches Hong Kong Secondary Listing to Fund European Expansion
- Chinese battery giant Contemporary Amperex Technology Co. Ltd. (CATL) has launched its secondary listing in Hong Kong, aiming to raise funds primarily for the construction of its Hungary factory, according to its prospectus disclosed by the Hong Kong Stock Exchange Tuesday.
- The move could become one of Hong Kong’s largest listings in recent years, with Bloomberg reporting a potential fundraising target exceeding $5 billion.
- Shenzhen-listed CATL’s stock closed Tuesday at 251.8 yuan ($34.47), down 2.57% from the previous day, with a total market capitalization of 1.1 trillion yuan. The company’s valuation peaked at 1.6 trillion yuan in December 2021.
CATL IPO (Hong Kong) Valuation Analysis
- Our valuation analysis suggests that CATL is undervalued. Our base case valuation suggests implied market cap of 1.5 trillion CNY, which represents 33% higher than current levels.
- Our valuation sensitivity analysis suggests a market cap valuation range of 1.2 trillion CNY to 1.8 trillion CNY.
- We estimate CATL to generate revenue of 431.7 billion RMB (up 16.8% YoY) and net profit of 61.4 billion RMB (up 10.5% YoY) in 2025.
CATL H Share Listing: The Investment Case
- Contemporary Amperex Technology (CATL) (300750 CH), the world’s largest supplier of EV and ESS batteries, has filed for an H Share listing to raise US$5 billion.
- CATL’s global EV battery market share, measured in GWh, rose from 27.6% in 2019 to 36.8% in November 2024.
- The investment case rests on a leading market position, forecasted return to growth, peer-leading profitability, cash generation, peer-leading FCF margin and an attractive valuation.
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