J.P. Morgan Chase released a research report stating that it downgraded the rating of Ningde Era H shares to “neutral,” maintained the “increase in holdings” rating of A-shares, and lowered the profit forecast of Ningde Era, while maintaining the only “increase in holdings” rating among battery stocks covered by the bank. Ningde Times will announce its third-quarter results after the market closes today. The stock price fell today, hitting an intraday low of more than a year since the end of August last year. J.P. Morgan said there is growing concern that the profitability of the industry is deteriorating faster than expected, and profits in the electric vehicle industry chain are undergoing a wider redistribution. The reduction in battery consumption tax, export tax rebate rates, and increasing trade barriers have followed one after another, putting pressure on the profitability of automakers. The bank pointed out that the Ningde era may have been the first to be hit, but in the end it may become the big winner, because regardless of whether it transfers cost pressure or absorbs part of the burden on its own, the end result may be increased customer stickiness, etc. The bank said that Ningde Era H shares have a premium over onshore A shares, which is expected to reflect that onshore investors are more cautious about policy uncertainty, while global funds seem to be betting on strong long-term potential growth.

Disclaimer:Webull uses external vendor Google Translation Service for news translations where we endeavour to ensure these are correct, however, we recommend that you please double-check this information accordingly. Webull is not responsible for translation errors or issues.