Citi: Downgrades Wuxi Lead Intelligent Equipment (00470) rating to "Neutral", cuts target price to HK$24

Citi issued a research report downgrading Wuxi Lead Intelligent Equipment (00470) from "Buy" to "Neutral," with its target price sharply cut from HK$63 to HK$24. The report noted that although Wuxi Lead Intelligent Equipment's management remains optimistic about order visibility, the bank has seen early signs of a slowdown in battery capital expenditure from the operating data of automation companies. Citi forecasts global battery capacity to grow 24% and 15% year-on-year in 2027 and 2028, respectively, below the 46% year-on-year growth in 2026. As a result, the bank lowered its earnings forecasts for Wuxi Lead Intelligent Equipment for each year from 2026 to 2028 by 2%, 19%, and 37%, respectively, reflecting downward revisions to revenue expectations and higher asset impairments during a downturn cycle.