Citi has issued a research report maintaining a "Buy" rating on SIGENERGY (06656) with a target price of HK$500.

After communicating with the company, the investment bank believes there is no specific negative news, and since September 30, SIGENERGY's share price has largely reflected market concerns. At current levels, the stock trades at 7.4 times its forecast price-to-earnings ratio for 2027, which represents an attractive entry opportunity.

The report notes that Australia's home battery market may decline in the second half of 2026 and into 2027, but European demand remains on a growth trajectory, and the company also has incremental sales from emerging markets.

The impact of UK budget cuts on the company's 2027 demand is estimated at only about 0.5% to 1%. The risk of trade restrictions on residential energy storage system products in Europe is relatively low, as multiple countries need to subsidize home batteries to reduce household electricity bills.