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CATL H-shares fall 1.62% as JPMorgan and Citi say market pessimism leads to overselling
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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-share (300750) dropped 2.49% to 293.50 yuan. JP Morgan maintained an 'overweight' rating and a 725 Hong Kong dollar target price, attributing the stock's 17% monthly decline—versus the Hang Seng Index's 2% drop—to market concerns over OEM supply diversification, slowing demand, and intensifying competition. The bank cited a September 2025 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; 79% of respondents said a recognized high-quality battery brand increases purchase intent, 76% would pay a premium, and 37% of Chinese consumers would reconsider if their preferred model did not use CATL batteries. Citigroup noted a 'de-CATLization' trend as second-tier battery makers expand capacity and improve quality, but said CATL is expanding outside China, with overseas market share reaching 45% in the first seven months of 2026 versus 44% in fiscal 2025. Citi argued CATL is oversold due to pessimistic sentiment, given double-digit demand growth and attractive valuations.
Source report
Hong Kong-listed shares (03750) of Contemporary Amperex Technology Co. Ltd. (CATL) narrowed their decline in afternoon trading, last trading at HK$484.80, down 1.62%, with a turnover of HK$563 million. The stock had fallen over 2% earlier in the session.
A-share counterpart (300750) also declined, trading at RMB 293.50, down 2.49%.
Analyst Commentary
JPMorgan
JPMorgan 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. The 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 over the second-ranked brand, respectively
- 79% of respondents said a recognized high-quality battery brand increases 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
Citi noted market attention on the "de-CATL-ization" trend driven by automakers diversifying battery suppliers for cost discipline. The bank acknowledged this trend is occurring, as second-tier battery manufacturers are effectively ramping up production and improving quality to support downstream EV development and cost discipline.
Citi pointed out that CATL is actively expanding into EV markets outside China, with its 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 being oversold due to pessimistic sentiment, citing:
- Sustained double-digit demand growth
- Attractive valuation levels
Source
金吾资讯Eastern
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CATL shares drop 17% month-to-date; JPMorgan, Citi call it oversold