DBS Group research analysts say concerns that CATL will lose market share to
second-tier suppliers appear overstated. They argue competition in China’s
battery sector is shifting toward firms that provide integrated energy-system
solutions rather than suppliers of standalone cells. CATL’s business model
offers solutions across battery types and can meet customer needs including
power-conversion equipment, the analysts say. As downstream customers place
greater emphasis on system efficiency and energy management rather than battery
procurement cost alone, CATL’s competitive edge should strengthen. DBS maintains
a buy rating; PTs are RMB 624.00 for A-shares and HKD 925.00 for H-shares.
