HK Stock Market Move | Contemporary Amperex Technology (03750) fell more than 4% intraday; Morgan Stanley said the company's portfolio volatility exceeded expectations, leading to an overestimation of its profitability.

Contemporary Amperex Technology (03750) fell more than 4% intraday, down 2.58% as of press time at HK$347.6, with turnover of HK$869 million. On the news front, Morgan Stanley noted in a research report that Contemporary Amperex Technology's third-quarter revenue grew 59% year-on-year, reflecting strong performance in both shipment volume and market share, but product mix volatility exceeded expectations, leading to an overestimation of profitability. Contemporary Amperex Technology's third-quarter per-unit net profit fell by about RMB29 per kWh quarter-on-quarter. Morgan Stanley said this already accounts for factors including lithium inventory losses, foreign exchange losses, consumption tax, reduced VAT rebates, customer rebates and product mix changes. After adding back one-off and reversible items, third-quarter per-unit net profit performance remains resilient. Morgan Stanley said it has cut Contemporary Amperex Technology's net profit forecast for this year by 6% to RMB89.4 billion, and lowered its 2027 and 2028 forecasts by 7% and 10% respectively, saying it remains optimistic about the long-term outlook. It believes the global electrification addressable market excluding the US could double over the next five years, the sodium battery product cycle is beginning to materialize, and the battery-swapping alliance is making good progress, but expects Contemporary Amperex Technology's H-shares may remain volatile over the next three months, with the H/A premium potentially narrowing further.