CATL Earnings: In Line, Margin Recovery On Track

No-moat Contemporary Amperex Technology reported 83% revenue growth year over year in the first quarter. The margin recovery since the trough in the first quarter of last year remains on track, with a 6.8-percentage-point increase in the first-quarter gross margin from a year ago. With first-quarter revenue and net profit accounting for 21% and 24% of our full-year forecast, respectively, we consider the results in line with our expectation. As a result, we keep our financial forecast unchanged and keep our fair value estimate at CNY 433 per share, which implies a forward price/earnings ratio of 26 times.