Lyon: Reaffirming Ningde Era's "highly confident to outperform the market" rating, H-share premium situation may continue.

A report released by Lyon indicated that since Ningde Times listed on the Hong Kong stock market, its stock price has risen by more than 23%, currently with a 11% premium over A shares. The bank reiterated its "highly confident of outperforming the market" rating for Ningde Times, with a target price of HK$385. The bank believes that the premium of H shares may be the new normal for large mainland and Hong Kong dual-listed companies. BYD is the closest peer to Ningde Time with dual-listing, its H shares currently have a 5% premium, and have been trading at a premium to A shares since early May. The 11% premium of Ningde Times' H shares may be due to the optimistic sentiment in the Hong Kong market, but even after the initial market excitement, the bank believes that the premium of its H shares may continue.