HK Stock Market Move | Contemporary Amperex Technology (03750) falls more than 4% again; automakers adjust battery supply systems; Citi says market concerns over battery demand are excessive.

Contemporary Amperex Technology (03750) fell more than 4% again, bringing its cumulative decline within the month to over 18%. As of press time, it was down 3.58% at HK$493.2, with turnover of HK$815 million. On the news front, on September 4, Sunwoda Electronic announced that Li Auto plans to inject RMB 2.65 billion into Sunwoda Electronic Power. A few days later, Li Auto issued another statement announcing that its subsequently self-developed batteries will be fully installed across all Li Auto models. It is understood that in recent years, a number of leading new energy vehicle manufacturers, including Xiaomi and NIO, have been readjusting their power battery supply systems. Based on third-party installation data estimates, Li Auto and Xiaomi together account for approximately 13.6% of Contemporary Amperex Technology's domestic installed volume. Citi released a research report stating that concerns over 2027 battery demand have led to recent sell-offs in Contemporary Amperex Technology and lithium carbonate-related stocks. It believes the market has already priced in weak expectations and that this has been somewhat excessive. Based on valuation attractiveness, it is bullish on Contemporary Amperex Technology's A-shares, as well as second-tier players that are gaining market share. The report pointed out that Contemporary Amperex Technology's recent sell-off was mainly due to concerns over battery oversupply and a deteriorating competitive landscape.