HK Stock Market Move | Contemporary Amperex Technology (03750) opened nearly 3% lower; multiple factors disrupt profitability, Q3 net profit down 5.77% quarter-on-quarter.

Contemporary Amperex Technology (03750) opened nearly 3% lower, down 2.87% as of press time at HK$400, with turnover of HK$202 million. On the news front, Contemporary Amperex Technology disclosed its 2026 third-quarter report on the evening of October 20. Third-quarter operating revenue was RMB 165.221 billion, up 58.58% year-on-year, and net profit attributable to shareholders was RMB 21.246 billion, up 14.54% year-on-year but down 5.77% quarter-on-quarter. Third-quarter profit came in below market expectations, mainly due to changes in product mix, cuts to export tax rebates, and consumption tax. Asset impairment losses increased by RMB 1.2 billion quarter-on-quarter over the same period, most of which were inventory impairments caused by fluctuations in lithium carbonate prices. JPMorgan recently issued a research report stating that it downgraded Contemporary Amperex Technology's Hong Kong stock rating from "Overweight" to "Neutral," and cut its target price from HK$725 to HK$500. The reason is that concerns have shifted from demand to profitability, industry profitability may deteriorate faster than expected, and profits across the industry chain are being redistributed.