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Investing.com - Contemporary Amperex Technology Co Ltd (SZ:300750) remains JPMorgan’s top pick in the China battery value chain despite recent market share declines in key segments.
JPMorgan has reiterated an Overweight rating on CATL with a price target of RMB480.00, maintaining its positive outlook on the battery manufacturer.
The company experienced market share drops in both the energy storage systems (ESS) and China electric vehicle markets during the first half of 2025, which has raised some investor concerns.
According to JPMorgan, these declines are primarily attributable to capacity constraints, with CATL operating at 90% utilization rate in the first half of 2025 and currently at full capacity, along with strategic decisions to allocate resources toward higher-margin business segments.
JPMorgan expects CATL to regain market share across most markets in 2026, including in China’s EV sector, the European EV market, and global energy storage systems.
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