CLSA: Contemporary Amperex Technology (03750) draws the most investor attention; maintain "High Conviction Outperform" rating.

CLSA released a research report stating that the bank held its annual investor forum last week, during which the stock most discussed by investors was Contemporary Amperex Technology (03750). Some attendees were bullish on its long-term development path, believing it can overcome short-term challenges and maintain its dominant position, and were willing to endure short-term volatility; while bears believed the company's earnings and share price still have greater downside. CLSA maintains its "High Conviction Outperform" rating on Contemporary Amperex Technology, with a target price of HK$770. The bank noted that investors believe the decline in Contemporary Amperex Technology's gross margin in the first half of this year should be temporary, and expect gross margin to stabilize in the second half as lithium prices fall, while sodium-ion battery production will also help ease some raw material cost pressure from 2027 onward; the bearish side, meanwhile, is pessimistic about energy storage demand in 2027, with the most pessimistic forecast suggesting China's energy storage demand may decline year-on-year in 2027; and views recent moves by EV OEMs to diversify supply and reduce reliance on Contemporary Amperex Technology as a potential signal of market share loss, and that amid intensifying competition the company may be forced to join price cuts to defend market share, potentially causing a structural decline in gross margin. CLSA currently leans bullish, believing the current setbacks are only temporary.