HK Stock Market Move | Contemporary Amperex Technology(03750) extends decline to over 8% as Q3 results loom; JP Morgan says industry profitability may deteriorate faster than expected

Contemporary Amperex Technology (03750) extended its decline to over 8%, touching HK$402.6, a new low since September last year. As of press time, it is down 7.62% at HK$407.2, with turnover of HK$2.097 billion. On the news front, Contemporary Amperex Technology will announce its third-quarter results today. JPMorgan's latest research report points out that although global demand for electric vehicle and energy storage batteries is expected to grow 20% to 25% above market expectations by 2027, what really affects battery companies such as Contemporary Amperex Technology is not demand, but profitability deteriorating faster than expected. The report notes that downstream automakers, under pressure on profitability, also face factors such as battery consumption tax, lower export VAT rebate rates, and increasing trade barriers, making automakers more cautious about cost control and causing them to pass a considerable portion of this burden upstream along the industrial chain and to broader supply chain segments. The bank emphasizes that this is not merely a traditional price war, but a redistribution of profits.