(Bloomberg) -- China's stock-market darling Contemporary Amperex Technology is close to overtaking a state-owned lender to become the nation's second-largest listed company.
With a market capitalization of over 1.55 trillion yuan ($242 billion) Monday, the Tesla supplier is just a 1% climb away from surpassing Industrial & Commercial Bank of China Ltd. at 1.57 trillion yuan. Both lag distiller Kweichow Moutai Co.'s 2.27 trillion yuan market cap.
Based in China's southeastern Fujian Province, CATL is the world's largest manufacturer of power batteries and materials and also counts auto giants Daimler, BMW, BAIC Motor Corp as among its customers. It has surged 90% this year as the bellwether of China's electric autos supply chain, amid Beijing's vigorous support for green vehicles and carbon neutrality.
The company accounts for a 21% weighting in China's Nasdaq-style ChiNext Index.
Earnings Beat
Third-quarter earnings beat expectations as strong pricing power allowed the company pass on costs and improve margins despite inflation, analysts said. They see further gains ahead amid robust orders and rising market share -- CICC analysts including Tao Zeng lifted their price target to 800 yuan compared to Friday's close of just over 639 yuan.
CATL has replaced Moutai as the stock most held by mutual fund managers, according to a recent Shanghai Securities News report. Its shares are up more than 2550% from its mid-2018 IPO, with stock placements and lock-up expiries yet to affect the upward trajectory.
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With assistance from Bloomberg
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