HK Stock Market Move | Contemporary Amperex Technology (03750) opens more than 3% lower; Q3 profit misses expectations; UBS cuts the company's net profit forecast.

Contemporary Amperex Technology (03750) opened more than 3% lower. As of press time, it was down 3.29% at HK$352.8, with a turnover of HK$172 million. On the news front, in the third quarter, Contemporary Amperex Technology recorded a net profit attributable to shareholders of RMB21.246 billion, up 14.54% year-on-year but down 5.77% quarter-on-quarter, missing prior consensus expectations. A relevant person in charge of Contemporary Amperex Technology explained at a results briefing that, affected by consumption tax and export tax rebates, combined with changes in product mix, the company's third-quarter performance changed, and the company is actively communicating with customers to share the related impact together. As for operating cash flow, it was in response to initiatives to standardize supplier payments, and inventory was in line with expectations. UBS released a research report stating that Contemporary Amperex Technology's net profit for the first nine months was RMB64.5 billion, only reaching 62% to 67% of the full-year market consensus and the bank's estimate, which may lead to a downward revision of full-year consensus expectations. UBS accordingly cut the company's net profit forecasts for 2026 to 2028 by 11% to 14% to a range of RMB90 billion to RMB131 billion, lowered its target price from HK$820 to HK$730, and maintained a "Buy" rating.