Macquarie: Raising the target price for the Ningde Era (03750) to HK$700 to “outperform the market”

The Zhitong Finance App learned that Macquarie released a research report stating that it raised the target price for the Ningde Era (03750) from HK$680 to HK$700, reaffirming the “outperforming the market” rating. The bank pointed out that although domestic demand for electric vehicles is softening and dragging down sentiment, the Ningde Era can offset the impact by increasing the installed capacity of bicycle batteries and passing on costs. Although the bank lowered its profit forecast for FY2026 by 9%, it rolled the valuation benchmark to 20 times the earnings per share for FY2027 and raised the H share premium from 20% to 25%, taking into account share supply and demand.

Ningde Times will announce the results for the second quarter of 2026 after the market closes on Friday (24th). Second-quarter earnings are expected to face short-term pressure due to slowing demand for electric vehicles (BEVs) and sharp fluctuations in raw material costs. The bank predicts that its delivery volume for the second quarter will remain flat at 202GWh on a quarterly basis, 9% lower than market consensus; revenue is expected to be 139.1 billion yuan (same below), which is 6% lower than market expectations; gross margin is also under pressure due to weakening demand for ternary lithium batteries and increased competition in energy storage systems.