Shares of Contemporary Amperex Technology fell sharply after weaker-than-expected third-quarter earnings prompted analysts to lower their target prices for the world's largest battery maker.

CATL shares were down 10% in Hong Kong by midday Wednesday, which would be a record drop if sustained through the close. The stock was also 10% lower in Shenzhen, trading at 232.33 yuan, on course for its biggest daily decline in one and a half years.

Analysts at Citi said that a lower-than-expected gross margin, higher expenses and greater impairment losses contributed to the net profit miss. That triggered a target price cut to 479 yuan from 500 yuan.

CATL's gross margin fell to 19.3% in the third quarter, dragged by product-mix changes and an increased tax surcharge stemming from a reduced export tax rebate and a reinstated battery consumption tax, Citi wrote in a note.

The Chinese battery giant on Tuesday reported a 14.5% increase in quarterly net profit to 21.25 billion yuan, equivalent to $3.18 billion, with revenue climbing 59% to 165.22 billion yuan.

Nomura cautioned of near-term pressure on CATL's unit profitability and cut its target price to 408 yuan from 632 yuan.

However, it said it expects global battery demand to be resilient in the long term, thanks to continued electric-vehicle penetration in Europe and emerging markets, as well as robust growth in global energy-storage-system demand.