HK Stock Market Move | Hainan Drinda New Energy Technology (02865) up more than 3%, company's first quarter profit turned positive exceeded expectations, indirectly holding controlling stake in Shanghai Xuntian Qianhe.

Hainan Drinda New Energy Technology (02865) rose more than 3%, reaching a 2.58% increase to 32.6 Hong Kong dollars, with a turnover of 93.5386 million Hong Kong dollars as of the time of writing. On the news front, recently, Hainan Drinda New Energy Technology released its first quarter performance for 2026. Soochow pointed out that the company's performance in the first quarter of 2026 turned from loss to profit, exceeding expectations. According to estimates, the company's battery sales volume in the first quarter of 2026 is about 5GW, a decrease of approximately 30% from the previous quarter and year-on-year. Benefiting from the improvement in supply and demand in the battery sector in Q1 and strong overseas demand, with a high proportion of exports, the overall profit per watt is calculated to be marginal. The bank predicts that the company's production base in Turkey will start in the second quarter, directly supplying the U.S. market, which is expected to contribute to profits this year. Looking ahead, domestic demand is expected to recover, overseas demand remains resilient, and it is estimated that battery shipments in Q2 will be approximately 7-8GW. As supply and demand relations optimize and shipments to the U.S. market increase, profitability is expected to continue to improve. Soochow continued to point out that Hainan Drinda New Energy Technology is actively expanding into commercial aerospace and space photovoltaics to create new growth opportunities. The company holds shares in Xingyi Xineng, cooperates in perovskite and CPI film technology. Through its subsidiary Jetai Aerospace, the company is accelerating the technical research and development and pilot line construction of CPI film and perovskite crystalline silicon laminated products, promoting technical exchanges with customers at home and abroad, sample testing, and other work. The company cash acquired a 60% shareholding in Shanghai Fuyaoxinghe Aerospace Hi-Tech Holding Group, indirectly controlling Shanghai Xuntian Qianhe. With ample orders in hand, covering various types of satellites such as remote sensing, communications, and computing power, it also provides on-orbit verification resources for space photovoltaics.