Dongwu Securities: Maintains a "buy" rating on Ningde Times, profits and scale resonate positively.

Dongwu Securities research report pointed out that Contemporary Amperex Technology Co., Ltd. (CATL) is leading the industry in technological innovation, with profits and scale resonating positively. It is estimated that the global demand for power and energy storage batteries in 2026 will be approximately 2716GWh, an increase of +32% year-on-year, with the power sector accounting for 1692GWh, an increase of +19.3% year-on-year, benefiting from the increase in electric vehicle battery capacity and continued high growth in commercial vehicles; the global energy storage market is booming, with limited impact on lithium carbonate prices, and an expected increase of 60% year-on-year to 1024GWh. In 2027, global demand for power and energy storage is expected to maintain a growth rate of over 20%, with the possibility of exceeding 5000GWh by 2030. In the power sector, CATL's market share continues to increase, with a global market share of over 39.2% in 2025, an increase of 1.2 percentage points year-on-year, and a market share in Europe surpassing 45%. In 2026, driven by the high-end models in the domestic market, the global market share is expected to further increase to 40%. In the energy storage sector, restrictions on the company's production capacity in 2025 slowed down, but the release of 120GWh of large battery production capacity in 2026 is expected to double the shipment volume to over 250GWh, with a market share expected to rise to 30%. Therefore, it is expected that the company's production capacity will increase by over 40% to 1.1TWh in 2026, with shipments of 900-1000GWh; and by the end of 2026, the production capacity is expected to reach 1.4TWh, maintaining a growth rate of 20-30% in 2027. The leading profitability of the company is strong, further widening its competitive advantage in 2026. In addition, the company's leading position in new products and technologies, such as battery swapping, solid-state, and sodium batteries, is steadily advancing. Based on the company's global leading position in the battery industry, a 30x P/E ratio is given for 2026, corresponding to a target price of 618 yuan, maintaining a "buy" rating.