CITIC Lyon: Reiterating the Ningde Era (03750) “superior to the market” rating, the target price of HK$670 continues to be the first choice for the sector

The Zhitong Finance App learned that CITIC Lyon released a research report stating that it reaffirms that Ningde Era (03750) is the first choice for the global battery sector and maintains a “superior to market” rating. The target prices for A shares and H shares are RMB 460 and HK$670, respectively.

According to the report, despite recent concerns about energy storage demand in 2027, some front-line representatives said that the current energy storage sodium-ion batteries on the market are more expensive than lithium iron phosphate. As production capacity expands from 2027 to 2028, the cost of sodium-ion batteries will drop, and the future will be more competitive.

The bank added that China's internal energy storage forecast is still strong in 2027. Although demand from industrial and commercial customers has slowed in recent months, the magnitude is not alarming. The internal guidelines should be far higher than the 10% year-on-year increase, which is in stark contrast to the year-on-year decline expected by some domestic brokerage firms, indicating that the market may be excessively pessimistic.

Another industry representative pointed out that sodium ions are not a substitute for lithium ions, and the company may launch energy storage products using both chemical systems to complement each other. The bank previously believed that the current price in the Ningde era had reflected the 2027 consensus profit reduction of 12%, with an implied increase of only 6%. The current valuation and the above feedback support have made the bank maintain a positive view of the company.