Changes in Hong Kong stocks | The decline in the Ningde Era (03750) widened by more than 8%, and the third quarter results are being disclosed soon, Komo says the industry's profitability may deteriorate faster than expected

The Zhitong Finance App learned that during the Ningde Era (03750), the decline widened by more than 8%, hitting a new low of HK$402.6 since September last year. As of press release, it decreased by 7.62% to HK$407.2, with a turnover of HK$2,097 billion.

According to news, Ningde Times will announce the third quarter results today. According to the latest research report from Motong Daikon, although global demand for electric vehicles and energy storage batteries is expected to increase 20% to 25% higher than market expectations in 2027, it is not the demand that really affects battery companies such as the Ningde Era, but rather the profitability of deteriorating faster than expected.

The report points out that under the premise that profits are under pressure, downstream car builders will also have to face factors such as battery consumption tax, lower export value-added tax rebate rates, and increased trade barriers, making car companies more cautious in controlling costs, which will cause car companies to shift a significant portion of this burden upstream of the industrial chain and the wider supply chain. The bank emphasized that this is not just a traditional price war, but a redistribution of profits.