Xiaomo: Maintaining a positive view on energy storage demand until 2030, the Ningde Era (03750) is the first choice

The Zhitong Finance App learned that J.P. Morgan Chase released a research report saying that since June of this year, China's energy storage value chain shares in the A-share market have been drastically adjusted, and the performance of major markets such as Ningde Era (300750.SZ), Haibo Sichuang (688411.SH), Deye Technology (605117.SH), and Sunshine Power (300274.SZ) has declined far, reflecting investors' concerns about the weak prospects for China's energy storage demand next year and rising geopolitical uncertainty.

However, J.P. Morgan believes that the market is overly pessimistic, maintains a positive view of energy storage demand until 2030, and predicts that the compound annual growth rate of energy storage installed in China until 2030 will be about 22%. Battery shipments are expected to increase by about 20% year on year in 2027, while the market expects almost zero growth.

Among shares, the bank continues to rank Ningde Era (03750), Sunshine Power, and Deye Technology as the first choice, and sees Ningde Era as the best choice for grasping global energy storage growth. Due to its leading market share, strong overseas exposure, and recent adjusted valuation, the target price is HK$725.