The Economic Information Agency (21st) reported that Ningde Era's (03750) H-shares are down 8.5% at HK$376.6, marking six consecutive days of decline with a cumulative drop of 23.9%. The stock traded around 3.11 million shares, involving HK$1.193 billion. Its A-shares (SZ: 300750) are at RMB 237.1, down 8.5%, with turnover of RMB 10.557 billion involving 43.88 million shares. At current prices, the A-shares trade at a 26% discount to the H-shares.
Ningde Era announced a net profit of approximately RMB 21.25 billion in the third quarter ended September 30, up 14.5% year-on-year but down 5.8% quarter-on-quarter, falling short of the expected RMB 26.03 billion. Earnings per share were RMB 4.62. Excluding non-recurring gains and losses, net profit was RMB 18.86 billion, up 14.9%. Operating revenue was RMB 165.2 billion, up 58.6%, also below the market expectation of RMB 175.05 billion. The weighted average return on equity was 5.56%.
For the first nine months, net profit was RMB 64.53 billion, up 31.6%, with earnings per share at RMB 14.13. Excluding non-recurring gains and losses, net profit was RMB 57.88 billion, up 32.7%. Operating revenue was RMB 442.1 billion, up 56.2%. The weighted average return on equity was 17.64%, driven by business expansion.
After the earnings release, multiple brokerages downgraded Ningde Era's target price. Goldman Sachs cut its target by 9.5%, from HK$859 to HK$777. UBS lowered its target from HK$820 to HK$730, a reduction of about 10%. CLSA reduced its target from HK$670 to HK$585, a decrease of nearly 13%.
Currently, the Hang Seng Index stands at 24,004, up 136 points or 0.6%, with main board turnover exceeding HK$28 billion. The H-share Index is at 8,081, up 50 points or 0.6%. The Hang Seng Tech Index is at 4,086, up 40 points or 1%. (am)
Ningde Era announced a net profit of approximately RMB 21.25 billion in the third quarter ended September 30, up 14.5% year-on-year but down 5.8% quarter-on-quarter, falling short of the expected RMB 26.03 billion. Earnings per share were RMB 4.62. Excluding non-recurring gains and losses, net profit was RMB 18.86 billion, up 14.9%. Operating revenue was RMB 165.2 billion, up 58.6%, also below the market expectation of RMB 175.05 billion. The weighted average return on equity was 5.56%.
For the first nine months, net profit was RMB 64.53 billion, up 31.6%, with earnings per share at RMB 14.13. Excluding non-recurring gains and losses, net profit was RMB 57.88 billion, up 32.7%. Operating revenue was RMB 442.1 billion, up 56.2%. The weighted average return on equity was 17.64%, driven by business expansion.
After the earnings release, multiple brokerages downgraded Ningde Era's target price. Goldman Sachs cut its target by 9.5%, from HK$859 to HK$777. UBS lowered its target from HK$820 to HK$730, a reduction of about 10%. CLSA reduced its target from HK$670 to HK$585, a decrease of nearly 13%.
Currently, the Hang Seng Index stands at 24,004, up 136 points or 0.6%, with main board turnover exceeding HK$28 billion. The H-share Index is at 8,081, up 50 points or 0.6%. The Hang Seng Tech Index is at 4,086, up 40 points or 1%. (am)
