CATL's Buyback Nears RMB 5.36 Billion as JPMorgan Cuts Targets on Battery Tax Squeeze

CATL shares shed 3.7% in the latest session, caught in a selloff that swept across Asian technology names after heavy losses on Wall Street. The decline coincided with a fresh dose of caution from JPMorgan, which trimmed its earnings forecasts for China's battery sector, citing the difficulty of passing on tax-related battery costs to customers. The bank's more guarded stance accompanied the weakness in Hong Kong-listed battery stocks but was not established as the sole trigger for CATL's slide.

Lower Price Targets Across Both Share Classes

JPMorgan cut its target for the A-share line to RMB 300 from RMB 310, and lowered the H-share target to HKD 420 from HKD 440. The "Neutral" rating stayed in place on both counts.

Buyback Progress and a Bullish Delivery Forecast

On the capital-return front, CATL reported Monday that it had repurchased 19,605,919 A-shares through October 31, paying RMB 5,360,125,612.64 excluding transaction fees. The purchases fall under an already approved program worth between RMB 20 billion and RMB 40 billion, with the bought-back stock earmarked for cancellation and a reduction in registered capital. The update reflects execution of the existing plan rather than any new repurchase announcement.

Chairman and CEO Robin Zeng offered a separate gauge of business momentum on October 31, projecting deliveries of more than 1,000 GWh for the current year. That would mark a substantial step up from the 661 GWh shipped in the prior year.

European Home Storage in the Works

CATL, Octopus Energy and Ampace signed a memorandum of understanding to explore smart home storage and energy-management solutions, with the UK, France and Spain as the first markets in view. Under the arrangement, Ampace would develop and manufacture the battery cells, battery management systems and storage systems, while Octopus Energy would contribute its customer channels along with energy supply and management services. Sodium-ion technology could also feature in the solutions under review. The agreement is aimed at exploring options, not at a confirmed full-scale market rollout.

Aviation and Industrial Partnerships Round Out the Week

CATL also closed strategic and product-related cooperation agreements with Blue Vector on Monday, becoming the exclusive battery partner for the SKYLA V30 aircraft and taking on custom development of the aviation battery for the program. Two days earlier, on November 1, the company agreed a strategic collaboration with Shanghai Electric spanning carbon-neutral industrial parks, energy storage, green transport and international business.