CATL’s Valuation Gap Highlights Investor Divide as Earnings Near

Contemporary Amperex Technology Co. Ltd.’s Hong Kong-listed shares have maintained a considerable premium over their Shenzhen-traded peers after a months-long selloff, underscoring a divide between onshore and offshore investors ahead of the Chinese battery giant’s earnings release.

The world’s largest battery maker remains 41% pricier in Hong Kong than on the mainland bourse, after narrowing the gap from June’s record of roughly 60%.

The valuation premium has survived even as the stock has declined on both exchanges in recent months on concerns about automakers’ battery supply diversification and a weaker economy. Analysts say the persistent gap partly reflects onshore investors’ greater caution over policy uncertainties, while global funds appear to have priced in stronger long-term growth potential.

Attention now turns to CATL’s third-quarter results due on Tuesday. Goldman Sachs Group Inc. forecasts 24 billion yuan ($3.6 billion) of net profit, representing a 30% on-year increase and driven by strong sales. UBS Group AG, meanwhile, says investors who consider the stock’s recent pullback overdone are looking for fresh catalysts including a production ramp-up at the company’s Hungarian plant or improved domestic passenger-car sales.