Daiwa Downgrades CATL to Hold Following 3Q Results

Daiwa has downgraded CATL from buy to hold following the company's third-quarter results, citing concerns over profitability and a new normalized margin level. Analysts pointed to challenges such as limited cost pass-through capacity amid a weak new energy vehicle sales outlook and expected tax burdens. Additionally, there are market concerns about the decoupling of new energy vehicle manufacturers using self-developed battery technologies, compounded by management's lack of clarity on future strategies and cost-mitigation measures.