According to the 36Kr Finance APP, Morgan Stanley released a research report stating to maintain a 'shareholding' rating for Ruipulan Jun (00666), and lower the earnings forecast for the company for 2024, 2025, and 2026 by 11-12%, reducing the target price from 13.6 Hong Kong dollars by 14% to 11.7 Hong Kong dollars. The basic assumption for the company is that by 2025, the domestic electric vehicle battery market share will be 8%.

The bank pointed out that Ruipulan Jun still recorded losses in the first half of 2024, mainly due to the decline in battery prices. Morgan Stanley believes that battery prices are unlikely to rebound in the short term, mainly due to intense competition in the industry. In this situation, it is believed that it will be very difficult for the company to improve profitability in a downturn cycle. In addition, the company's running rate in the first half of the year remains at a low level of 35%, and it is believed that in the medium to short term, its operating speed will not significantly improve due to capacity expansion. Therefore, the sales volume forecast for 2024, 2025, and 2026 is reduced by 11-12%.