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CATL H-shares fall 1.62% as JPMorgan and Citi say it is oversold on market pessimism
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Contemporary Amperex Technology Co. Ltd. (CATL) H-shares (03750) fell 1.62% to 484.80 Hong Kong dollars in afternoon trading, paring earlier losses of over 2%, with turnover of 563 million Hong Kong dollars. Its A-shares (300750) dropped 2.49% to 293.50 yuan. JP Morgan maintained an 'overweight' rating and a 725 Hong Kong dollar target price, noting the stock has fallen 17% month-to-date versus the Hang Seng Index's 2% decline, driven by market concerns over OEM supply diversification, slowing demand, and intensifying competition. The bank cited a September Nielsen IQ global EV consumer survey showing CATL's trust ratings of 81% in China and 75% overseas, leading the second-ranked brand by 4 and 8 percentage points respectively, with 79% of respondents saying recognized high-quality battery brands increase purchase intent and 76% willing to pay a premium. Citi acknowledged a 'de-CATL-ization' trend as second-tier battery makers expand capacity and improve quality, but argued CATL is oversold due to pessimistic sentiment, given its overseas market share rose to 45% in the first seven months of 2026 from 44% in fiscal 2025, double-digit demand growth, and attractive valuations.
Source report
Hong Kong-listed shares of Contemporary Amperex Technology Co. Ltd. (CATL) (03750) narrowed their afternoon decline, last trading at HK$484.80, down 1.62%, with a turnover of HK$563 million. The stock had fallen more than 2% in early trading.
The corresponding A-shares (300750) also declined 2.49%, currently trading at RMB 293.50.
Analyst Commentary
JPMorgan Maintains Overweight Rating
JPMorgan has maintained its "Overweight" rating on CATL with a target price of HK$725. The bank noted that CATL's H-shares have fallen 17% month-to-date, significantly underperforming the Hang Seng Index's 2% decline over the same period. This weakness is attributed to market concerns over:
- OEM supply chain diversification
- Slowing demand
- Intensifying competition
JPMorgan believes the market is overly focused on short-term pricing and market share trends. Citing Nielsen IQ's September global new energy vehicle consumer survey, the bank highlighted:
- CATL's trust rating: 81% in China and 75% overseas
- A lead of 4 and 8 percentage points, respectively, over the second-ranked brand
- 79% of respondents said a recognized high-quality battery brand would increase their purchase intent
- 76% are willing to pay a premium
- 37% of Chinese consumers would reconsider purchasing a desired model if it did not use CATL batteries
Citi Comments on "De-CATL" Trend
Citi noted that the market is focused on the "de-CATL" trend, driven by automakers diversifying battery suppliers for cost discipline. The bank acknowledged this trend is occurring, as second-tier battery manufacturers are effectively expanding production and improving quality to support downstream EV development and cost control.
However, Citi pointed out that CATL is actively expanding into EV markets outside China, with its global market share reaching 45% in the first seven months of 2026, compared to 44% in fiscal 2025, alongside a higher-end product mix. The bank believes CATL is oversold due to excessive pessimism, citing:
- Sustained double-digit demand growth
- Attractive valuation levels
Source
金吾资讯Neutral / independent