Investment Express Report

International investment bank Morgan Stanley’s latest research report has caused significant divergence in the stock trends of CATL’s A-shares and H-shares. While raising the A-share target price by 15% to 490 yuan and maintaining an “overweight” rating, the bank downgraded the H-share rating to “equal weight” with a target price of 585 Hong Kong dollars, creating a stark contrast in market reactions between the two markets.

A-Shares Have 15% Upside Potential While H-Shares Momentum Slows

Morgan Stanley clearly expressed differentiated views on CATL’s dual-listed shares in its research report: For A-shares, the new target price represents over 20% upside potential compared to the closing price of 402 yuan on September 30, primarily based on optimistic expectations for the company’s energy storage business—the bank expects CATL’s market share in China’s energy storage system market to increase from the current approximately 10% to over 50% in the next three years. The H-share rating downgrade stems from valuation considerations, with the 585 Hong Kong dollar target price implying less than 1% upside from recent prices, while maintaining the H/A-share premium ratio at 10%.

This adjustment continues the recent divergence in institutional views on CATL’s dual-market valuations. Previously, institutions such as JPMorgan and Goldman Sachs had downgraded their H-share ratings due to factors including H-share valuations becoming more reasonable and the approaching lock-up period for cornerstone investors, while maintaining positive views on A-shares.

A-Shares Rally Then Retreat While H-Shares Show Narrow Fluctuations

Affected by the rating adjustment news, CATL’s A-shares showed strong performance at today’s opening. After opening slightly lower at 399.9 yuan compared to the previous closing price, the stock quickly surged, reaching a new high of 424.6 yuan during the session. By midday close, the stock price stood at 417.7 yuan.

H-shares, however, faced pressure, opening at 592 Hong Kong dollars and falling to a low of 568 Hong Kong dollars during the session, near Morgan Stanley’s target price, before slightly recovering. By midday close, H-shares were trading at 588.5 Hong Kong dollars, up 7.5 Hong Kong dollars from the previous trading day, with trading volume shrinking compared to the same period yesterday. Market analysis indicates that the cautious performance of H-shares is closely related to expectations of the cornerstone investors’ lock-up period expiration on November 19, as cornerstone investors holding nearly 50% of H-shares may face profit-taking pressure.

Morgan Stanley

Morgan Stanley is a leading global financial services firm, not a cultural or historical site. It was founded in 1935 in New York City, following the Glass-Steagall Act that separated commercial and investment banking. Today, it provides investment banking, securities, wealth management, and investment management services to a worldwide client base.

CATL

I am unable to provide a summary for “CATL” as it does not refer to a widely recognized place or cultural site. CATL is the acronym for Contemporary Amperex Technology Co. Limited, a leading Chinese company that manufactures electric vehicle batteries and energy storage systems. It was founded in 2011 and has since become a major global player in the technology and clean energy industry.

JPMorgan

JPMorgan is a major American multinational financial services firm and one of the largest banking institutions in the world. It was formed through the 2000 merger of J.P. Morgan & Co. and The Chase Manhattan Corporation, but its namesake heritage traces back to the powerful J.P. Morgan empire of the late 19th and early 20th centuries. The firm has played a significant role in shaping modern finance, including financing railroads and stabilizing the U.S. banking system during the Panic of 1907.

Goldman Sachs

Goldman Sachs is a leading global investment bank and financial services firm, founded in New York City in 1869. It has played a significant role in the development of modern finance, advising on major corporate deals and managing assets for institutions and wealthy individuals. Throughout its history, it has been a central figure in Wall Street, though it has also faced public scrutiny, particularly following the 2008 financial crisis.