Citibank: Raise the target price of Wuxi Lead Intelligent Equipment (00470) to HK$67, it is unlikely that this year is the peak of the industry cycle.

Citigroup released a research report stating that the target price for Wuxi Lead Intelligent Equipment (00470) H shares has been raised from HK$62 to HK$67, equivalent to a forecasted P/E ratio of 39 times this year, with a "buy" rating. The report also mentioned that the company's solid-state battery orders have reached 1 billion RMB in 2025, and management expects the order amount to double to 2 billion RMB in 2026, with half coming from overseas and half from domestic clients in China. Additionally, the company signed a strategic cooperation agreement with the Beijing humanoid Siasun Robot & Automation Innovation Center to collaborate on data collection and humanoid Siasun Robot & Automation assembly equipment. Citigroup believes that this will help lead the expansion into a rapidly growing equipment market domain. After participating in the 2026 China Elite Enterprise Day, the Company Secretary of Wuxi Lead Intelligent Equipment, Yao Yao, believes that considering the capacity expansion plans of leading battery manufacturers and the contribution of new technologies such as solid-state batteries and sodium-ion batteries, 2026 is unlikely to be the peak of the current upturn cycle. Management stated that new order growth in 2026 could reach 40% to 50% year-on-year, higher than the previous guidance of 30%. The report pointed out that orders from the fourth quarter of 2024 are expected to convert into revenue from the second quarter of 2026, and these orders have already shown improvement compared to the low point in the third quarter of 2024, therefore, revenue and profit growth are expected to gradually improve after the first quarter of 2026. Citigroup raised its profit forecast for Wuxi Lead Intelligent Equipment in 2026 and 2027 by 10% and 9%, respectively, to reflect the gradual improvement in revenue recognition.