CICC: First Give Positively Run New Force (03677.HK) Surpass Industry Rating, target price 11.4 HKD

According to the Wise Wealth APP, Zhongjin issued a research report stating that it has initiated coverage on Zhengli New Energy (03677.HK) with an outperform industry rating and a target price of HK$11.40. Based on the PE valuation method, the corresponding valuation multiple is 26.0x (2026), with a potential upside of 20.6%. The company is a leading manufacturer of power and energy storage batteries in China. It is expected that the company's EPS for 2025-2026 will be 0.20 yuan and 0.40 yuan respectively, with a CAGR of 236% for 2024-2026. The bank believes that the company has passed the profit inflection point of scale and its profitability is expected to stabilize and improve. Potential catalysts include 1) the company continues to receive new orders; 2) the company's profit improvement exceeds expectations.