Ningbo Ronbay New Energy Technology (688005.SS): 1H26 Preliminary NP at Rmb100-120mn; Model Update and Maintain Neutral

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Ningbo Ronbay New Energy Technology (688005.SS): 1H26 Preliminary NP at Rmb100-120mn; Model Update and Maintain Neutral

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06 Jul 2026 12:32:13 ET │ 14 pages

Ningbo Ronbay New Energy Technology

(688005.SS)

1H26 Preliminary NP at Rmb100-120mn; Model Update and Maintain

Neutral Neutral

Price (06 Jul 26 15:00) Rmb27.180

CITI’S TAKE

Target price Rmb29.100↓ Ronbay announced 1H26 preliminary results, with net profit at Rmb100-

120mn, vs. -Rmb68.4mn in 1H25, accounting for 21-26% of our full-year from Rmb32.500

forecast and 25-30% of Bloomberg consensus. Implied 2Q26 net profit at Expected share price return 7.1%

Rmb88-108mn, vs. Rmb12mn in 1Q26 and -Rmb53mn in 2Q25, which is Expected dividend yield 0.7%

strong. We expect the QoQ increase in 2Q26 net profit is mainly driven by Expected total return 7.8%

increasing NCM cathode sales and improving profitability of new business Market Cap Rmb19,426M

incl. LFMP and sodium-ion battery cathode. We update our Ronbay model US$2,870M

post its FY25 and 1Q26 results to factor in latest management guidance.

We revise our earnings forecast by -22%/-7% to Rmb468/809mn for

2026/27E and introduce 2028E earnings forecast of Rmb1,136mn. We use

15.7x 2026E EV/EBITDA (vs. 14.6x previously), the historical average Jimmy Feng, CFAAC

minus 0.75x SD EV/EBITDA multiple, to derive the target price for Ronbay +852-2501-7588

of Rmb29.10/sh, (vs. Rmb32.5/sh previously). We believe the stock’s jimmy.feng@citi.com

current valuations look fair and Maintain Neutral. Jack Shang, CFA

+852-2501-2441

1H26 profit alert — Ronbay announced 1H26 preliminary results, with net profit at jack.shang@citi.com

Rmb100-120mn, vs. -Rmb68.4mn in 1H25, accounting for 21-26% of our full-year

Anna Wangforecast and 25-30% of Bloomberg consensus.