Paul Tudor Jones sees potential market rally after late October
Investing.com - Jefferies has downgraded Eve Energy Co Ltd (SHE:300014) from Buy to Hold and reduced its price target to RMB41.00 from RMB55.00 following the company’s first-half 2025 earnings results.
The Chinese battery manufacturer’s revenue growth in the first half of 2025 met expectations, driven by strong electric vehicle and energy storage system battery shipments and improved utilization rates, which positively impacted gross profit margins.
Despite the revenue performance, Eve Energy reported a net profit decline of approximately 25% year-over-year due to several unexpected factors, including employee stock ownership plan costs, accounts receivable write-offs related to Hozon Auto, foreign exchange losses, and losses from joint ventures and associates.
Jefferies noted that Eve Energy maintains positive growth prospects for its EV and ESS battery segments in the second half of 2025, supported by new customer acquisitions and ongoing capacity expansion efforts.
The downgrade decision was primarily based on the company’s earnings miss in the first half of 2025, despite the favorable outlook for its core battery business through the remainder of the year.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.