Nari Technology - A Tour Takeaways: Growth drivers on track, expense control to watch

Research evidence excerpt

Nari Technology - A Tour Takeaways: Growth drivers on track, expense control to watch

J P M O R G A N Asia Pacific Equity Research

22 May 2026

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Nari Technology - A Overweight

600406.SS, 600406 CH

Tour Takeaways: Growth drivers on track, expense Price (21 May 26):Rmb25.66

control to watch Price Target (Dec-26):Rmb30.00

Key takeaways from our recent meeting with Nari include: (1) double-digit order Power Equipment and Utilities

ACgrowth YTD sustained into April, led by Energy & Low Carbon and overseas; (2) Stephen Tsui, CFA

management sees upside to the original 15th FYP targets, with overseas revenue (852) 2800-8592

contribution now preliminarily targeted at 15%+ (vs. the original >10% goal); (3) stephen.tsui@jpmorgan.com

overseas revenue could exceed Rmb10bn in FY26E (vs. Rmb6bn+ in FY25); (4) Vento Suen

AI exposure remains focused on grid-context adoption and energy solutions for (852) 2800-8546

data centers (mainly public-side for now), with a technical white paper released last vento.suen@jpmorgan.com

month; SST next-generation prototypes are under R&D; and (5) R&D spending Alan Hon

will likely remain elevated, while the company will keep strict control on SG&A. (852) 2800-8573

alan.hon@jpmorgan.com

Fundamentals remain on track with robust order growth and overseas ramp-up, yet J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

expense control remains the key swing factor for earnings delivery. We see double- Morgan Broking (Hong Kong) Limited