Citi: Yadi Holdings (1585. HK) new acquisition helps battery R&D maintain a "buy" rating

Citi said in a report that 1585.HK will gain control of the production technology of E2W graphene batteries through the new acquisition, which is crucial to increasing the driving range and reducing charging time of its products, and is also the core of the future development of electric two-wheeler (E2W) battery development. In view of the growing importance of battery technology in the E2W industry R&D competition, it has a positive attitude towards the transaction and maintains a "buy" with a target price of HK$23.

Yadi Holdings recently acquired 70% of the equity of Nandu Huayu in Jieshou City and Nandu Power Supply in Zhejiang Changxing, who are mainly engaged in the sale of battery plates and battery business in Jieshou City, Anhui Province, for a total cash consideration of RMB312 million.