CATL (03750) opened more than 3% lower. As of press time, the stock was down 3.29% at HK$352.8, with turnover of HK$172 million.

On the news front, in the third quarter, CATL reported net profit attributable to shareholders of RMB 21.246 billion, up 14.54% year-on-year but down 5.77% quarter-on-quarter, falling short of prior consensus expectations.

A CATL representative explained at the earnings briefing that due to the impact of consumption tax and export tax rebates, combined with changes in product mix, the company's third-quarter performance saw changes. The company is actively communicating with clients to share the related impact. As for operating cash flow, it reflects the company's response to initiatives and standardization of supplier payments, while inventory levels are in line with expectations.

UBS released a research report stating that CATL's net profit for the first nine months was RMB 64.5 billion, reaching only 62% to 67% of the full-year market consensus and the bank's estimate, which could lead to downward revisions of full-year consensus expectations.

UBS accordingly lowered its net profit forecasts for the company from 2026 to 2028 by 11% to 14%, to a range of RMB 90 billion to RMB 131 billion. The target price was cut from HK$820 to HK$730, while the "Buy" rating was maintained.