Citibank: Maintaining the target price of HK$500 for the “Buy” rating of SGD New Energy (06656)

The Zhitong Finance App learned that Citi released a research report stating that it gave Sega New Energy (06656) a “buy” rating, with a target price of HK$500. After communicating with the company, the bank believes that there is no specific negative news. Since September 30, the stock price of SGL New Energy has generally reflected market concerns. Currently, the stock price corresponds to 7.4 times the projected price-earnings ratio for 2027, which is an attractive entry opportunity.

The bank pointed out that the Australian household battery market may decline in the second half of 2026 and 2027, but European demand is still growing, and the company also has incremental sales from emerging markets. The impact of the UK budget cuts on the company's demand in 2027 is estimated to be only about 0.5% to 1%; the risk of trade restrictions on European residential ESS products is relatively low, as many countries need to subsidize household batteries to reduce household electricity bills.