Morgan Stanley's latest research insight report, released on the morning of January 28, points out that the share price of Hong Kong-listed Contemporary Amperex Technology Co., Ltd. (CATL) (03750) is expected to outperform the industry average over the next 15 days. Analyst Jack Lu at Morgan Stanley believes that the recent pullback in CATL's stock price has made its short-term valuation more attractive, suggesting the market has overreacted to concerns about margin pressure from cost inflation. The report emphasizes that CATL has demonstrated a mature ability to pass on costs during previous lithium price upcycles. From a long-term perspective, CATL has established a solid barrier against raw material inflation through its strategic acquisitions, either directly or indirectly via subsidiaries, of cobalt, phosphorus, copper, and lithium resources. Morgan Stanley anticipates that, supported by ample low-cost inventory in the first quarter of 2026, CATL's profitability will remain stable amidst the current raw material inflation and considers the company's A-share valuation to be more attractive.