CATL H-shares hit new high as BNP downgrades on 55% premium

CATL's Hong Kong-listed shares extended their rally to a sixth consecutive session, reaching an intraday record of HKD794.5, as BNP Paribas downgraded the stock to Neutral from Outperform on valuation concerns.

BNP Paribas said in a research report that CATL's H/A share premium has widened to 55%, a level it considers excessive even after accounting for strong global investor interest in the company and the energy storage system sector. The bank noted that the limited free float of H-shares relative to A-shares may have amplified the upward momentum but said a stable premium of 20% to 30% would be more reasonable.

The bank maintained its earnings forecasts and kept its H-share price target at HKD800 and its A-share target at RMB580, both based on a discounted cash flow valuation. It reiterated its Outperform rating on CATL's A-shares (300750.SH), which it said offer more attractive implied return upside from current levels.

CATL's H-shares closed at HKD790 at midday, up 1.35%, extending a rally that began after the stock's Hong Kong listing in May 2025. Turnover reached HKD154 billion...

Wait, let me re-read the source. Turnover was HKD1.54 billion (1.54 billion, not 154 billion). Let me fix.

CATL's H-shares closed at HKD790 at midday, up 1.35%, extending a rally that began after the stock's Hong Kong listing in May 2025. Turnover reached HKD1.54 billion, with short selling accounting for 43.5% of trading volume, or HKD670 million.

The downgrade from a bulge-bracket bank may cap further upside for the H-shares despite the company's strong fundamentals. Investors will watch whether the H/A premium narrows toward BNP's 20% to 30% target range, a move that could trigger profit-taking after the six-day rally pushed the stock to successive records.

This article is for informational purposes only and does not constitute investment advice.