CITIC Lyon: It is expected that the stock price of the Ningde Era (03750) will remain volatile in the short term until the third quarter results are announced

The Zhitong Finance App learned that CITIC Lyon released a research report stating that it maintains the Ningde Era (03750,300750.SZ) rating and that the target prices are HK$770 and RMB 535, respectively.

The recent decline in stock prices was mainly affected by investor sentiment, particularly the “reverse fear of missing out” (reverse FOMO) phenomenon observed during market promotion in the UK and Europe, which led to a sell-off in the market. According to the report, the bullish and bearish forces will continue to struggle in the short term, and the stock price may remain volatile until the company is expected to announce the results for the third quarter of 2026 in mid-October.

According to industry battery shipment data, CITIC Lyon expects Ningde Era's profit to increase by 35% to 40% year-on-year in the third quarter of 2026, which is equivalent to net profit of about RMB 25 billion to RMB 26 billion. The report believes that this steady performance does not constitute weak performance, and therefore believes that the current stock price is overreacting.

The report points out that the key observation point is the trend of gross margin in the third quarter of 2026 in the Ningde era, which will reflect whether the declining trend in profits is temporary or structural. The bank expects gross margin to improve, but will not confirm until results are announced. In the absence of significant catalysts, the stock price is expected to continue to fluctuate over the next month.