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 bank pointed out that market concerns have spread from a slowdown in demand growth in 2027 to overcapacity, declining utilization, and a new round of price competition. Recently, the supplier diversification strategy of the Xiaomi Group-W (01810) and the news that Ideal Automobile-W (02015) self-developed batteries have also heated up pessimism in the industry.

However, the bank believes that 2027 will not repeat the cycle of overcapacity from 2023 to 2024. It points out that the share of the electric vehicle battery market in China increased further from 44% last year to 48% in the first half of this year. It believes that its market position has not been damaged, and maintains a net profit forecast of 95 billion yuan and 116 billion yuan for this year and next two years.

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