On July 28, CATL fell 3.23% in regular trading, trading at HK$614.5/share, with turnover of HK$348 million.

On the news front, although CATL's first-half report delivered strong headline figures — revenue of RMB 276.9 billion (up 54.80% YoY) and net profit of RMB 43.28 billion (up 41.98% YoY) — its gross margin fell 1.7 percentage points quarter-over-quarter to 23%, marking the second consecutive quarterly decline and missing market expectations. Institutions noted the margin compression was primarily driven by intense downstream price competition, with cost pass-through failing to materialize in Q2, creating short-term pressure on the stock.

CLSA lowered its H-share target price from HK$820 to HK$770 and cut net profit forecasts for the current year through 2028 by 1% to 4% to reflect lower margin expectations. Meanwhile, the company announced a record A-share buyback plan of RMB 20-40 billion for cancellation, which multiple banks view as supportive of investor confidence at current valuations.

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