Dahua Jixian: Lowering the target price in the Ningde Era (03750) to HK$675 in profit estimates

The Zhitong Finance App learned that Dahua Jixian released a research report stating that it maintained the Ningde Era (03750) “buy” rating, but lowered the target price of H shares to HK$675, the target price of Ningde Era (300750.SZ) A shares was lowered from RMB 640 to RMB 585, the valuation benchmark was rolled from 2026 to 2027, and the target valuation multiplier was reduced from 31 times to 23 times the price-earnings ratio originally predicted.

Ningde Era's net profit for the second quarter was RMB 22.55 billion (same below), up 36.5% year on year, driving net profit for the first half of the year to 43.3 billion yuan, up 42% year on year. The performance was in line with expectations. However, gross profit and net profit per GWH fell to $147 million and $97 million, respectively. The bank raised the company's sales forecast for each year from 2026 to 2028 to 1,000 GWh, 1,230 GWh, and 1,450 GWh, respectively, but lowered the gross margin forecast to 23.4%, 23.7%, and 23.9%. The bank lowered Ningde Era's 2026-2028 net profit forecast by 1%, 7% and 12%, respectively, to 93.64 billion yuan, 116.39 billion yuan and 139.1 billion yuan.