HK Stock Market Move | Contemporary Amperex Technology (03750) fell more than 4% this morning. Lyon said that the company's current valuation already reflects most of the market's concerns.

Contemporary Amperex Technology (03750) fell by more than 4% in the morning, dropping 4.65% to HK$463.4, with a trading volume of HK$965 million at the time of publication. Lion released a report stating that by 2026, Contemporary Amperex Technology is facing several headwinds, causing investors to worry about its growth prospects. These include a slowdown in Chinese electric vehicle sales, rising lithium prices, and a reduction in battery export value-added tax rebates. The bank believes that Contemporary Amperex Technology's A/H shares are currently trading at a forward P/E ratio of 17/22 for 2026, which already reflects most of the market's concerns. Considering the bank's forecast of a 31% compound annual growth rate in earnings per share from 2025 to 2027, the risk-return ratio is attractive.