CLSA has released a research report stating that the brokerage held its annual investor forum last week, during which CATL (03750) was the most discussed stock among investors. Some attendees were optimistic about the company's long-term development path, believing it can overcome short-term challenges and maintain its dominant position, and are willing to endure short-term volatility. Meanwhile, bearish investors argued that the company's earnings and share price still have more downside potential.

CLSA maintains its "High Conviction Outperform" rating on CATL with a target price of HK$770.

The brokerage noted that investors believe CATL's gross margin decline in the first half of this year should be temporary, and expect gross margin to stabilize in the second half as lithium prices fall. The commencement of sodium-ion battery production is also expected to help ease some raw material cost pressure starting from 2027. On the bearish side, some are pessimistic about energy storage demand in 2027, with the most pessimistic forecast suggesting that China's energy storage demand could decline year-on-year in 2027. They also view recent moves by electric vehicle manufacturers to diversify suppliers and reduce reliance on CATL as potential signals of market share loss. Amid intensifying competition, the company may be forced to join price cuts to defend its market share, potentially leading to a structural decline in gross margin.

CLSA currently leans bullish, believing that the current setbacks are only temporary.