The only new energy battery! S&P raises CATL's rating, all A certification!

On May 7, Standard & Poor's upgraded CATL's long-term issuer rating from "BBB+" to "A-", and gave a "stable" outlook. Currently, CATL's ratings have all risen to the A range at the three major international rating agencies, and it is the only company in the new energy battery sector with all ratings in the A range.

S&P believes that CATL's overseas expansion should mitigate the impact of slowing domestic growth. Profit expansion will drive growth in operating cash flow, and CATL's strict control of capital expenditures will help the company maintain a net cash position in 2024-2025. S&P expects CATL's overseas sales to increase by 34%-37% in 2024, while global sales will increase by 19%-23% year-on-year, which will be reflected in revenue, an 8% year-on-year increase for the full year. In addition, benefiting from the decline in raw material prices in the next two years, CATL's EBITDA margin is expected to further expand to 19.7%-19.8% in 2024-2025.

The S&P rating upgrade is closely related to the increase in market confidence. According to yesterday's data, CATL has been continuously bought by northbound funds for 5 consecutive trading days, with a cumulative net inflow of 2.392 billion yuan.

Since the beginning of the year, many institutions have been optimistic about CATL and have upgraded their ratings. In early March, Morgan Stanley released a report, upgrading CATL's rating to "overweight" and setting a target price of RMB 210. On April 15, Moody's Ratings upgraded the guaranteed senior unsecured bonds issued by CATL and Contemporary Ruiding Development Limited, a wholly-owned subsidiary of CATL, to A3, and gave a stable outlook for CATL.

The reason behind the continued optimism of authoritative institutions is the sustained and stable growth of CATL's performance and innovation. Recently, CATL released its first quarter report for 2024, with net profit attributable to shareholders of listed companies increasing by 7% year-on-year. In the whole year of 2023, CATL achieved a 22.01% increase in operating income and a 43.58% increase in net profit.

According to global power battery statistics released by South Korean research institution SNE Research, CATL continued to rank first in the world in terms of power battery installation in the first quarter of this year. Its power battery installation was 60.1 GWh, a year-on-year increase of 31.9%, and its market share was 37.9%, nearly three percentage points higher than the same period last year. CATL has ranked first in the world in terms of power battery installation for seven consecutive years.

Innovation must be implemented, innovation must be fast, and innovation must be forward-looking. This is CATL's persistent pursuit of the spirit of innovation. From the world's first launch of CTP technology in 2019, to the release of the ultra-long-range Kirin battery in 2022, to the application of condensed matter batteries in electric manned aircraft released last year, CATL has always been at the forefront of technology and promoted the rapid development of battery technology. In particular, this year, CATL has successfully achieved the first flight of a ton-level verification aircraft equipped with condensed matter batteries, once again proving its innovative strength in the field of new energy.

Not only that, CATL has also shown an amazing speed in innovation. In August last year, CATL launched the world's first 4C super-fast charging Shenxing battery, which can last 400 kilometers in just 10 minutes of charging, bringing great convenience to electric vehicle users. Then, on April 9 this year, CATL released the world's first 5-year zero-attenuation and mass-produced energy storage system-Tianheng Energy Storage System, which provides strong support for the large-scale application of new energy storage. At the Beijing International Auto Show on April 25, CATL released a new lithium iron phosphate battery-Shenxing PLUS with both 1,000km of endurance and 4C super-charging characteristics, further consolidating its leading position in the field of battery technology.

In addition, CATL is not only continuously optimizing and upgrading existing technologies, but also actively exploring key technologies for next-generation batteries, such as perovskite batteries, lithium-air batteries, etc. Through a large amount of technological accumulation and reserves, CATL is moving towards a breakthrough in achieving a qualitative change from quantitative change.

CATL has maintained a stable performance in the field of battery manufacturing, continued to innovate technology, gradually expanded its global influence, and worked hard to provide stable returns to shareholders. Faced with the growth trend of the global electric vehicle market, CATL will maintain its steady pace and continue to play an active role in the field of new energy.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.