Citigroup has released a research report, raising the target price for WUXI LEAD's (00470) H-shares from HK$62 to HK$67. This new target implies a forward price-to-earnings ratio of 39 times for the current year. The bank maintains its "Buy" rating on the stock.

The report also notes that the company has secured solid-state battery orders totaling 1 billion yuan for 2025. Management anticipates that order value will double to 2 billion yuan in 2026, with overseas and domestic Chinese customers each accounting for half of this amount.

Furthermore, the company has entered into a strategic cooperation agreement with the Beijing Humanoid Robot Innovation Center. This partnership will focus on data collection and the development of humanoid robot assembly equipment. Citigroup believes this move will help WUXI LEAD expand into a fast-growing equipment market segment with significant total addressable market (TAM) potential.

Following WUXI LEAD's participation in a 2026 China Elite Corporate Day event, the company's Board Secretary Yao Yao expressed the view that 2026 is unlikely to represent the peak of the current upturn cycle. This assessment considers the capacity expansion plans of leading battery manufacturers and the contributions from new technology pathways such as solid-state and sodium-ion batteries.

Management indicated that new order growth in 2026 could reach 40% to 50% year-over-year, surpassing the previous guidance of 30%. Citigroup points out that orders received from the fourth quarter of 2024 onward are expected to translate into revenue starting from the second quarter of 2026. These orders have already shown improvement compared to the low point in the third quarter of 2024. Consequently, revenue and profit growth are anticipated to gradually improve after the first quarter of 2026.

In light of the expected gradual improvement in revenue recognition, Citigroup has raised its profit forecasts for WUXI LEAD for 2026 and 2027 by 10% and 9%, respectively.