The Zhitong Finance App learned that Citi released a research report stating that it lowered the target prices of China Innovation Airlines (03931) and Ningde Times (03750) H shares, both maintaining a “buy” rating. Among them, the target price of China Airlines was lowered from HK$40.9 to HK$33.1, the target price of Ningde Era H shares was lowered from HK$888 to HK$765, and the target price of Ningde Era (300750.SZ) A shares was reduced to RMB 500. The bank believes that as battery production capacity catches up with demand, the industry will enter a downward cycle, but the overall utilization rate of the battery industry chain will remain stable, the supply and demand pattern will be more balanced, and the situation is not as pessimistic as expected by the market.
The bank believes that future opportunities will focus more on valuation and individual companies. Its preferred stocks across sectors include Ningde Times A shares, China Innovation Aviation, Everweft Lithium, LG Energy Solution, Kodali, Hunan Yuneng, and Panasonic.
The bank pointed out that the reduction in the target price of China Innovation Airlines mainly reflects the reduction in the valuation multiplier for the predicted price-earnings ratio in 2026 from 22.2 times to 18 times the industry average. The reduction in the target price of H shares in the Ningde Era is mainly due to the decline in the target price of A-shares. Currently, it is based on the EV/EBITDA ratio of 15.7 times the company's historical average in 2026, compared to 17.5 times previously.