CATL's Low Profitability in 3Q Could be New Normal
Dow Jones10-23 15:39
0739 GMT - Contemporary Amperex Technology's low profitability in 3Q could be the new normalized margin level given more headwinds ahead, say Daiwa analysts in a note. The miss in 3Q results indicates CATL's weak cost pass-through capacity amid a weak new energy vehicle sales outlook, alongside more severe tax burdens next year, they add. The market is also concerned about the potential decoupling of NEV makers with self-developed technologies. Daiwa sees limited market sentiment support in the near term with CATL's management offering limited information regarding future strategy or solid cost pass-through measures. Daiwa downgrades CATL to hold from buy. The stock ended 7.8% higher at 237.60 yuan in Shenzhen.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Comments