JP Morgan: The negative impact of the second-generation blade battery on Contemporary Amperex Technology (03750) is limited. The target price was raised to HK$650.

JPMorgan released a research report stating that BYD COMPANY (01211) released the second generation fast-charging battery (blade battery 2.0) on March 5, setting a new benchmark for full-charge speed and low-temperature performance. With both BYD Company Limited and Contemporary Amperex Technology (03750) accelerating the adoption of ultra-fast charging technology, investors continue to pay high attention to the competition between the two companies. JP Morgan maintained a "overweight" rating on Contemporary Amperex Technology (300750.SZ) A-shares and BYD Company Limited. The target price for Contemporary Amperex Technology H-shares was raised to 650 Hong Kong dollars (originally 640 Hong Kong dollars), but the rating was downgraded to "neutral" for pure valuation considerations, as H-shares are currently trading at a premium of over 40% to A-shares. Contemporary Amperex Technology A-shares remain JP Morgan's top choice in the Chinese battery sector. Overall, JP Morgan believes that the negative impact of BYD Company Limited's launch of the second-generation battery on Contemporary Amperex Technology is limited, and notes that as the market transitions to ultra-fast charging, there may be upside potential for spillover effects. It is expected that BYD Company Limited will gain market share in the overseas car sales market from a lower base, but its market share in the domestic market is expected to moderately decline.