Wuxi Lead Intelligent Equipment (00470) Plunges Over 9% to Record Low as Early Signs of Battery Capex Slowdown Emerge; Citi Downgrades Rating and Slashes Target Price

Wuxi Lead Intelligent Equipment Co.,Ltd. (00470) shares tumbled more than 9% in the afternoon session, touching HK$19.73, a new low since listing. Over the past five trading days alone, the stock has cumulative fallen more than 30%. As of press time, the stock is down 8.07% at HK$20.04, with turnover of HK$116 million.

On the news front, weakening demand for new energy vehicles in China, combined with recently introduced policies prohibiting energy storage equipment manufacturers with low capacity utilization rates from further expanding production, has raised market concerns that the pace of battery capacity expansion may slow.

Citi released a research report stating that although Wuxi Lead Intelligent Equipment Co.,Ltd. management remains optimistic about order visibility, the bank has observed early signs of a slowdown in battery capital expenditure from the operating data of automation companies. The bank's battery team also forecasts that global battery capacity will grow only 24% and 15% year-on-year in 2027 and 2028, respectively, below the 46% year-on-year growth expected in 2026. Citi downgraded Wuxi Lead Intelligent Equipment Co.,Ltd. from "Buy" to "Neutral" and drastically cut its target price from HK$63 to HK$24.