JPMorgan cut its rating on CATL H-shares (03750.HK) to Neutral, kept an
Overweight on A-shares and lowered its earnings estimates. The bank said it is
increasingly concerned industry profitability is deteriorating faster than
expected as profits shift across the EV supply chain. Policy changes — a battery
consumption tax, lower export rebate rates — and rising trade barriers are
pressuring automaker margins. JPMorgan warned CATL may be hit first but could
ultimately emerge a net beneficiary if cost pass-through or absorption increases
customer stickiness.
