Institution: Concerns about the potential loss of market share by CATL seem to be exaggerated.

Analysts from the DBS Group Research Department believe that concerns about Ningde Times potentially losing market share to second-tier suppliers seem exaggerated. They wrote that competition in the Chinese battery industry is shifting towards companies that can provide comprehensive energy system solutions, rather than those that only offer independent battery cells. Ningde Times' business model includes solutions for various types of batteries and can meet customer demands in areas including power conversion. They added that as downstream customers focus more on system efficiency and energy management, rather than just battery procurement costs, Ningde Times' competitive advantage should strengthen. DBS Group maintains a buy rating with target prices of RMB 624.00 for A shares and HKD 925.00 for H shares.