CATL Surges After Share Buyback Plan, Strong First-Half Profit

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessCATL Surges After Share Buyback Plan, Strong First-Half ProfitContemporary Amperex Technology Co. Ltd. shares jumped in China after the world’s biggest electric-vehicle battery manufacturer unveiled a buyback plan following strong earnings for the first half.Author of the article: You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — Contemporary Amperex Technology Co. Ltd. shares jumped in China after the world’s biggest electric-vehicle battery manufacturer unveiled a buyback plan following strong earnings for the first half.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe company plans to buy back 20 billion yuan to 40 billion yuan ($3 billion to $5.9 billion) worth of A-shares, citing confidence in growth prospects, according to a statement late Friday. CATL reported a 42% increase in first-half profit, in part due to robust demand for energy-storage systems.CATL climbed as much as 5.4% in Shenzhen on Monday to 403.6 yuan, the biggest intraday jump in more than a month, before pulling back slightly. The purchase price under the buyback program is capped at 573 yuan, and shares acquired will be canceled. The company’s shares in Hong Kong also surged at the open, before giving up all the gains and trending lower.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try again“Considering the company’s financials, industry position, and capital market factors, the company sought the buyback in order to address the potential for a significant drop in the company’s stock price and a mismatch between valuation and actual value due to market volatility,” CATL said in a filing on Sunday, citing minutes from an investor call on Friday. The battery maker has joined a number of Chinese companies announcing share buybacks in recent weeks after a selloff in artificial-intelligence and chip stocks spilled over into the broader market. CATL posted a 55% increase in first-half revenue, with energy storage becoming a bigger contributor.The energy-storage market “is expected to maintain a relatively rapid growth this year and next,” CATL told investors on Friday. “The company’s long-term profitability remains relatively stable.”—With assistance from Jing Jin.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.