Changes in Hong Kong stocks | The Ningde Era (03750) fell by more than 3%, then lowered battery industry profits and predicted that the impact of consumption tax on the company's gross margin would continue

The Zhitong Finance App learned that the Ningde Era (03750) fell by more than 3%. As of press release, it fell 2.26% to HK$371.4, with a turnover of HK$957 million.

According to the news, Xiaomo recently released a research report on the Chinese battery industry, indicating that the bank once again lowered the profit forecast for China's battery stocks covered, mainly due to a reduction in unit profit assumptions rather than a weakening in shipments, and lowered the target price of Ningde Times H shares from HK$440 to HK$420. Komo believes that recent communication with automakers and energy storage system integrators shows that transferring taxes is more difficult than the bank's previous assumptions. Customers are unwilling to simply absorb battery-related tax burdens through price increases, but instead seek sharing, supplier cost reduction, and supply chain optimization. So far, there are no OEM guidelines to raise vehicle prices to offset battery consumption tax.

Huaxing Securities, on the other hand, pointed out that the third quarter of the Ningde era was affected by many factors. Consumption tax was levied by 2% since September, and is currently entirely borne by Ningde. Therefore, 3Q26 will only be affected for 1 month. Ningde is actively discussing shared plans with downstream customers, and the impact of consumption tax on gross margin will continue in 4Q26. The bank believes that the core pressure that Ningde is currently facing still comes from the low profit margins in the new energy industry, causing car companies to adopt a multi-supplier strategy to continue to reduce prices, while it is more difficult for Ningde to transfer costs downstream as the industry leader and the company with the highest profit margin. In addition, export tax rebates will be further reduced to 0% starting January 2027. If Ningde is unable to reach cost sharing with customers, it may further affect profit margins.