Xiaomo: The stock price adjustment in the Ningde Era (03750) was a technical factor and reaffirmed its “gain” rating

The Zhitong Finance App learned that J.P. Morgan Chase released a research report stating that it reaffirmed the Ningde Era (03750) “gain” rating, and the target price remained unchanged at HK$725. The bank pointed out that the stock price of the Ningde era fell 8% on July 10, up 0.6% from the same day. The stock price has accumulated a correction of about 25% since the June high, and the Hang Seng Index fell 7% during the comparison period.

Motong believes that the weakening of stock prices is mainly dominated by technical factors and short-term market sentiment, rather than any substantial deterioration in the company's long-term fundamentals.

The bank believes that although recent fluctuations have affected market sentiment, investors should focus on the structural advantages of the Ningde era and be optimistic about the company's unrivaled technological leadership, industry-leading scale, and track record of achieving stable profits, shareholder returns, and free cash flow through the cycle. It is still believed that the Ningde era is a scarce industrial technology complex enterprise. Long-term value is driven by technological moats, excellent execution, and the ability to compound profit growth, rather than short-term monthly or quarterly data fluctuations.