China Stock of the Day | Kabutaro & Friends

Contemporary Amperex Technology (CATL) <300750>, the world's largest maker of batteries for vehicles and energy storage, was the Chinese stock most talked about online on October 21, 2026.
Background: In its July-September quarter results announced on the night of October 20, revenue grew 58.58% year on year to 165.221 billion yuan, but net profit attributable to shareholders rose only 14.54% to 21.246 billion yuan, down about 5.8% from the previous quarter. Gross margin fell to 20.7% from 23.2% in the April-June quarter, hurt by higher lithium carbonate prices, the consumption tax on batteries from September, and a cut in the export tax rebate rate. Disappointment over profit that fell short of expectations triggered selling, and on the 21st the A-shares fell more than 12% to their lowest since June 2025, while the Hong Kong shares <03750.HK> also dropped more than 11%. The stock is now less than half its May 7 record high. JPMorgan downgraded the Hong Kong shares to "Neutral" and cut its target price from 725 Hong Kong dollars to 500 Hong Kong dollars.