Lyon: Contemporary Amperex Technology (03750) reported lower-than-expected gross margin in the second quarter, raising concerns. Target price: HKD 770.

14:24 05/08/2026

The firm maintains a "high conviction to outperform the market" rating, with a target price of HKD 770 for H shares.

Lyon released a research report stating that Contemporary Amperex Technology (03750) had a gross margin in the second quarter that fell short of expectations, triggering a new wave of concerns in the market. As the company just began mass production of sodium-ion batteries, it makes it difficult for investors to determine whether its profit margins will recover in the second half of the year. The report noted that the current forecasted price-to-earnings ratio for Contemporary Amperex Technology (300750.SZ) A-shares is approximately 16 times, which is 0.5 standard deviations below the average; if it is further adjusted to 13 times, it would reach the lower valuation limit, providing investors with a good opportunity to enter the market. The report maintains a rating of "high confidence to outperform the market" with a target price of HKD 770 for H-shares.

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