FINWIRES · TerminalLIVE
FINWIRES

CATL's First-Half Profit Jumps 42%; Plans Up to 40 Billion Yuan Buyback

By
CATL's First-Half Profit Jumps 42%; Plans Up to 40 Billion Yuan Buyback

Contemporary Amperex Technology (SHE:300750, HKG:3750) disclosed plans to buy back up to 40 billion yuan worth of shares after posting a double-digit jump in earnings for the first half of the year on strong demand for its energy storage products.

First-half net attributable profit jumped 42% to 43.3 billion yuan from 30.5 billion yuan a year earlier.

Earnings per share climbed to 9.51 yuan from 6.92 yuan, according to a Hong Kong bourse filing after-market hours on Friday.

Revenue jumped 55% to 276.9 billion yuan from 178.9 billion yuan due to strong demand for new energy vehicle power and energy storage at home and overseas, the Chinese battery maker said.

Electric vehicle battery systems accounted for 69.4% of CATL's overall revenue at 192.1 billion yuan. Domestic sales made up 68.5% of revenue at 189.8 billion yuan.

CATL will distribute 1.411 yuan per share in ordinary interim dividends to all shareholders on record as of Aug. 13. The dividend will be paid out on Sept. 3.

In a separate filing on Friday, the company disclosed plans to repurchase between 20 billion yuan and 40 billion yuan worth of shares in Shenzhen.

CATL will repurchase shares at up to 573 yuan apiece. Based on the upper limit of 40 billion yuan, the company expects to buy back 69.8 million shares, representing 1.51% of its existing share capital.

At an extraordinary general meeting on Aug. 12, shareholders will vote on a proposed bond issuance by CATL subsidiary Guangdong Brunp Recycling Technology to meet its production and operation needs and reduce debt.

Related Articles

Update: Equities Mixed Amid Middle East Uncertainty; Wall Street Extends Weekly Losing Streak
US Markets

Update: Equities Mixed Amid Middle East Uncertainty; Wall Street Extends Weekly Losing Streak

(Updates with market moves at the end of the day and weekly index changes.)US stocks closed mixed Friday at the end of another bruising week, while oil prices retreated amid uncertainty around the Middle East situation.The Dow Jones Industrial Average rose 0.5% to 51,947.25, while the Nasdaq Composite fell 0.6% to 24,975.82. The S&P 500 edged up 0.1% to 7,411.98. Barring technology, all sectors advanced, led by real estate.This week, the Nasdaq fell 2.1% and the S&P 500 shed 0.6%, logging their second consecutive weekly losses. The Dow lost 0.4% to mark its third straight weekly decline.West Texas Intermediate crude was down 2.4% at $90.01 a barrel in Friday late-afternoon trade, while Brent fell 3% to $97.67. Both benchmarks were still on track for sharp gains for the week and this month.Pakistan has held exploratory discussions with Iran's Interior Minister Eskandar Momeni as it seeks to renew talks between Washington and Tehran, Reuters reported Friday, citing Pakistani sources. Islamabad has discussed the Middle East situation with China, according to the report.Bahrain, Jordan and Kuwait fended off Iranian attacks on Friday, CNN reported. US President Donald Trump told Axios on Thursday that he was "considering a massive attack" against Iran.US Treasury yields were mixed, with the two-year rate little changed at 4.35% and the 10-year rate down 1.7 basis points at 4.68%.The US on Thursday announced new tariffs on 60 economies over alleged forced labor failures, effectively replacing President Donald Trump's temporary 10% global tariffs, CNBC reported."The snap-back in oil prices, as well as another turn of the screw in tariffs, complicates the job of central bankers everywhere, and lands with a thud ahead of the (Federal Open Market Committee) meeting," BMO said in a report Friday.The probability that the US Federal Reserve will leave its benchmark lending rate unchanged next week moved to 62% on Friday from 87% a week ago, according to the CME FedWatch tool. The odds of a quarter-percentage-point increase shot up to 38% from 13%.In economic news, US private-sector output growth reached an eight-month high in July amid services boost, though price pressures intensified due to disruptions caused by the Middle East conflict, S&P Global's (SPGI) flash purchasing managers' index showed Friday.New-home sales in the US increased last month for the first time since March as house prices continued to fall, though inventory remained elevated at more than a nine-month supply, official data showed.In corporate news, Verizon Communications (VZ) raised its full-year earnings outlook amid phone subscriber gains in the second quarter. The company's shares jumped 5.8%.American Express (AXP) was the worst performer on the Dow, down 4.3%. The payments company's second-quarter earnings topped Wall Street's estimates, but revenue missed expectations.Gold was up 0.1% at $4,054.60 per troy ounce, while silver gained 0.6% to $58.40 per ounce.

Dow JonesNasdaq CompositeS&P 500$AXP$SPGI$VZ
Starbucks' Turnaround Strategy Could Drive US Comparable Sale Upside, UBS Says
US Markets

Starbucks' Turnaround Strategy Could Drive US Comparable Sale Upside, UBS Says

Starbucks' (SBUX) progress on its turnaround strategy could drive US comparable sales above consensus estimates for the fiscal third quarter, UBS Securities said in a note Friday.The brokerage expects US same-store sales growth of about 7% at the coffee giant, compared with Wall Street's 6.2% view, driven by gains in transactions and ticket size. Starbucks is scheduled to report its results Wednesday.UBS attributed the sales momentum to marketing and menu innovation, as well as to operational improvements, including store closures."We expect (Starbucks) turnaround plans and new sales initiatives should continue to support a sales recovery," UBS Analyst Dennis Geiger said.The company launched its "Back to Starbucks" strategy in September 2024 to revive traffic growth and support long-term margin expansion. Starbucks has announced multiple rounds of layoffs since 2025.Investors expect an upside to Starbucks' third-quarter earnings consensus of $0.66 per share, along with an increase to its full-year adjusted EPS guidance, according to the UBS note.Earlier in the year, the company raised its adjusted EPS outlook to between $2.25 and $2.45 as its second-quarter results exceeded market expectations.The brokerage projects full-year EPS of $2.41 against the consensus view of $2.40.UBS has a neutral rating on Starbucks' stock with a $105 price target. The stock has rallied nearly 23% so far this year."We believe shares already reflect a solid multiyear sales and earnings recovery, with a balanced risk/reward profile at current levels based on a reasonable valuation and the upper end of (or above) the (fiscal year 2028) target earnings range," Geiger added.US restaurant and food distributors likely saw a mixed second quarter as stable same-store sales mask underlying strains like slowing retail growth, Morgan Stanley said in a note last week. The beverage segment continues to be a "bright spot," said Morgan Stanley, which remained overweight on Starbucks.Price: $103.61, Change: $+0.40, Percent Change: +0.39%

$SBUX
Oil Falls Amid US-Iran Peace Talk Hopes, Heads For Another Weekly Gain
US Markets

Oil Falls Amid US-Iran Peace Talk Hopes, Heads For Another Weekly Gain

Crude oil prices fell Friday following a report on a China-backed push by Pakistan to revive stalled peace negotiations between the US and Iran.Brent futures were trading 3.9% lower at $96.74 a barrel in afternoon trading, after the global benchmark hit a day high of $101.19. West Texas Intermediate crude oil fell 3% to $89.40.Pakistan has held exploratory discussions with Iran's Interior Minister Eskandar Momeni as it seeks to renew talks between Washington and Tehran, Reuters reported Friday, citing Pakistani sources. Islamabad has also discussed the Middle East situation with China, according to the report.The US and Iran signed a Pakistan- and Qatar-brokered preliminary peace deal in June. However, tensions have escalated, with the US military striking Iran for the 13th consecutive night on Thursday and Iran launching attacks at American assets in the Middle East.China's foreign ministry said the country "supports the mediation efforts made by Pakistan and other parties," according to Reuters.Despite Friday's pullback, the two oil price benchmarks were on track for sharp gains this week. Brent was up 9.5% from last week, heading for its fourth consecutive weekly advance, while the US benchmark is set to lock in its third weekly gain in a row, up 9% so far this week. Both have gained around 30% this month.Bahrain, Jordan and Kuwait fended off Iranian attacks on Friday, CNN reported. US President Donald Trump told Axios on Thursday that he was "considering a massive attack" against Iran."The key question is at what price level pressure begins to build on the Trump administration to return to the negotiating table," ING Bank said in a report. "If Trump's previous spikes during the early stages of the war are any guide, pressure to de-escalate will likely grow significantly if, and when, Brent nears $120 (a barrel)."While markets continued to monitor supply disruptions in the crucial Strait of Hormuz, conflict has also flared up in the Red Sea, another vital crude supply chokepoint, according to reports."For Iran, it's less about where oil prices are trading (in fact, Iran will want to push prices as high as possible) and more about how long they can endure a collapse in oil revenues amid the US blockade," ING said.