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<Research>JPM Downgrades CATL (03750.HK) to Neutral on Valuation, Raises TP to $415
CATL (03750.HK)'s 2Q25 sales volume was approx. 150 GWh, with a net profit of about RMB16.5 billion, both beating JPMorgan's expectations, according to JPMorgan's resea...
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<Research>JPM Downgrades CATL (03750.HK) to Neutral on Valuation, Raises TP to $415
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CATL (03750.HK)  -3.200 (-0.788%)    Short selling $59.40M; Ratio 4.171%   's 2Q25 sales volume was approx. 150 GWh, with a net profit of about RMB16.5 billion, both beating JPMorgan's expectations, according to JPMorgan's research report.

However, the better-than-expected performance might have been anticipated by the market, as the Company's H-/ A-shares have risen by 24%/ 10% each over the past 9 trading days, while the HSI leaped by 4% during the same period. Currently, CATL's H-shares had a premium of over 40% over its A-shares.

Related NewsG Sachs Downgrades CATL (03750.HK) to Neutral on Valuation, Hikes TP to $436
The broker lifted its earnings forecast for CATL by 5% to reflect its higher-than-expected results, and raised its target price for the Company's H-shares from $400 to $415, equivalent to a consolidated PE ratio of 20x for 2026/ 2027.

Considering that the H-shares have spiked 62% in total since listing, the valuation has become reasonable (H-shares are equivalent to projected 2025/ 2026 PE ratios of 26.9x/ 22x respectively).

Therefore, JPMorgan downgraded CATL from Overweight to Neutral, emphasizing that this downgrade is purely based on valuation considerations.

Related NewsHSBC Global Research Lifts CATL (03750.HK) TP to $479; Overseas Mkt Shr Expansion Fuels Growth
CATL's A-shares (300750.SZ)  -1.550 (-0.586%)   remained the broker's top pick in China's battery sector, with rating kept at Overweight. Its current valuation is equivalent to projected 2025/ 2026 PE ratios of 19.1x/ 15.7x.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-08-01 16:25.) (A Shares quote is delayed for at least 15 mins.)

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