On October 20, JPMorgan Chase released a report downgrading the H-share rating of Contemporary Amperex Technology Co. Limited (CATL) (03750.HK) to 'Neutral', while maintaining its A-share rating at 'Overweight'. The bank also lowered its profit forecasts for CATL but still considers CATL's A-shares as the only stock with an 'Overweight' rating among the battery stocks it covers. JPMorgan Chase expressed concerns that the deterioration in industry profitability is occurring faster than expected, with profits along the electric vehicle supply chain undergoing a broader redistribution. Factors such as the battery consumption tax, reductions in export tax rebate rates, and increased trade barriers are putting pressure on the profitability of vehicle manufacturers. JPMorgan Chase believes that while CATL may be the first to feel the impact, it could ultimately emerge as a significant winner, as both passing on cost pressures and absorbing them internally could enhance customer loyalty.