Lyon: The Ningde Era (03750) received the most attention from investors and maintained a “Highly Confident Outperform” rating

The Zhitong Finance App learned that Lyon released a research report saying that the bank held an annual investor forum last week. The stock most discussed by investors during the event was Ningde Era (03750). Some people are optimistic about its long-term development path, believe it can overcome short-term challenges and maintain a dominant position, and are willing to survive short-term fluctuations; while those who are disdainful believe that the company's profits and stock prices still have more room to decline. Lyon maintains its “Highly Confident Outperforms the Market” rating of the Ningde era, with a target price of HK$770.

The bank pointed out that investors believe that the decline in gross margin of the Ningde Era in the first half of this year should be temporary. It is expected that as lithium prices fall back, the gross margin will stabilize in the second half of the year, and that sodium-ion battery production will also help ease the cost pressure on some raw materials starting in 2027; the most pessimistic forecast indicates that China's energy storage demand in 2027 or year on year is a sign of potential loss of market share due to increased competition, the company may be forced to join price cuts to maintain market share or gross margin. Interest rates have declined structurally. Lyon is currently optimistic, believing that the current setback is only temporary.