---
title: "CLSA Cuts CATL  TP to HKD770 as Gross Margin Declines QoQ for 2 Consecutive Quarters, Missing Forecasts"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/293872993.md"
description: "CLSA cut CATL's H-share target price to HKD770 and A-share to RMB535, citing consecutive quarterly gross margin declines due to intense price competition. While Q2 net profit rose 36% YoY, missing margin expectations pressured short-term sentiment. CLSA maintained a 'High Conviction Outperform' rating, noting that sodium-ion battery production in late 2026 may restore cost competitiveness."
datetime: "2026-07-27T02:59:23.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/293872993.md)
  - [en](https://longbridge.com/en/news/293872993.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/293872993.md)
generator: "portal-rs"
---

# CLSA Cuts CATL  TP to HKD770 as Gross Margin Declines QoQ for 2 Consecutive Quarters, Missing Forecasts

CLSA released a report stating that CATL (03750.HK) -0.500 (-0.080%) Short selling $419.39M; Ratio 36.363% 's net profit for 2Q26 rose 36% YoY and 9% QoQ to RMB22.5 billion, bringing 1H26 net profit to 45% of the broker's full-year forecast, with overall performance meeting market expectations. However, gross margin fell 1.7 ppts QoQ to 23%, marking the second consecutive quarter of QoQ decline and missing expectations. The weaker-than-expected gross margin was mainly due to intense downstream price competition, resulting in the inability to pass through costs in 2Q26. The broker expects the share price to face pressure in the short term. The company also announced a share buyback plan worth between RMB20 billion and RMB40 billion.

CLSA expects that the commencement of sodium-ion battery production in 2H26 will help the company regain cost competitiveness through its lower cost structure. Meanwhile, the current valuation, equivalent to forecast P/E ratios of 18x and 15x for 2026 and 2027 respectively, should also support the share price. The broker lowered its net profit forecasts for 2026-2028 by 1% to 4% to reflect lower gross margin assumptions; the H-share TP was cut from HKD820 to HKD770, while the A-share TP for CONTEMPORARY AMPEREX (300750.SZ) +20.190 (+5.271%) was lowered from RMB570 to RMB535. CLSA reiterated its "High Conviction Outperform" rating. (ad/u)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-07-24 16:25.) (A Shares quote is delayed for at least 15 mins.)

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**