Komo: Maintaining the Ningde Era (03750) “Accumulation” Rating Target Price of HK$725

The Zhitong Finance App learned that J.P. Morgan Chase released a research report stating that it maintains the Ningde Era (03750) “gain” rating, with a target price of HK$725. The company's stock price fell 17% this month, outperforming the 2% decline in the Hang Seng Index during the same period, mainly due to market concerns about scattered supply from OEM car manufacturers, slowing demand and increased competition. The bank believes that the market is too focused on short-term trends in sales prices and market share.

J.P. Morgan quoted NielsenIq's global NEV consumer survey in September this year as saying that the trust rating of NEV in China and overseas reached 81% and 75% respectively, leading the second-ranking brand by 4 and 8 percentage points; 79% of respondents said that approved high-quality battery brands would increase their willingness to buy, 76% would be willing to pay a premium, and 37% of Chinese consumers said that if the model they want does not use a battery from the Ningde era, they will consider more when purchasing.

The bank also pointed out that the quality of energy storage systems is becoming a driver of revenue and internal return rather than simply a cost consideration. It is said that the difference between equipment prices and peers in the Ningde era was generally less than 5% of the total project cost.