China's CBAK Energy Q4 revenue jumps 132%, helped by LEV, raw materials

Reuters03-30
China's CBAK Energy Q4 revenue jumps 132%, helped by LEV, raw materials

Overview

  • China lithium-ion battery maker's Q4 revenue surged 132% yr/yr, driven by LEV and raw materials

  • Gross margin for Q4 fell to 7.3% amid high ramp-up costs for new production lines

  • Company posted Q4 net loss as margin compression outweighed revenue growth

Outlook

  • Company projects record-high consolidated sales in 2026 driven by strong battery cell demand

  • Company expects gross margins to recover sequentially as production yields optimize and economies of scale are realized

Result Drivers

  • LEV BATTERY SALES - Co said Q4 LEV battery revenue surged 524% yr/yr, driven by expansion into India, Vietnam and Africa

  • RAW MATERIALS PRICING - Q4 battery raw materials segment revenue jumped 944% yr/yr, reflecting a rebound in raw material prices and strong downstream demand

  • RAMP-UP COSTS - Margin compression in Q4 was driven by high costs and inefficiencies during ramp-up of new production lines at Dalian and Nanjing

Company press release: ID:nGNX67FpNV

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Revenue

$58.80 mln

Q4 Net Income

-$7.38 mln

Q4 Gross Margin

7.30%

Q4 Operating Income

-$8.01 mln

Analyst Coverage

  • Wall Street's median 12-month price target for CBAK Energy Technology Inc is $1.50, about 84% above its March 27 closing price of $0.82

  • The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment