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<Research> CLSA Raises NIO Inc. (NIO.US) TP to USD7, Initiates H Shrs with Outperform
Recommend 5 Positive 3 Negative 3 |
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CLSA issued a research report stating that NIO-SW (09866.HK) recorded non-GAAP profitability for two consecutive quarters. In 1Q26, non-GAAP profit reached RMB45 million, in line with market expectations. On the cost front, the group continued to demonstrate disciplined spending, reflecting effective operating expense control measures. Domestic model synergies are expected to enhance NIO-SWs share in the premium segment, with ES8 and ES9 diversifying its profit contribution. The broker forecast 2026 sales volume to reach 441,000 units and expects the company to turn profitable for the full year. The report noted that strong orders for the ES8 model and improved delivery capabilities drove vehicle gross margin up by 0.7 ppts QoQ to 18.8% in 1Q26. Management guided quarterly R&D expenses to remain at RMB2 billion to RMB2.5 billion to strengthen brand positioning. CLSA expects synergies from new models including L80/90 and ES8/9 from 2Q26 onward to help ease profit pressure from individual models. It forecast 2026 sales of L80/90 and ES8/9 at 62,000 units and 188,000 units, respectively. Other business revenue hit a record high, with gross margin reaching 20.6%, while management guided full-year other business gross margin at around 20%. Given NIO-SWs strong performance in the premium segment and improved cost control, CLSA raised its 2026 revenue and net profit forecasts by 18.9% and 104.1% to RMB133.48 billion and RMB277 million, respectively. The broker maintained an Outperform rating on NIO Inc. (NIO.US) with TP raised from USD6 to USD7. It also initiated coverage on NIO-SWs H shares with an Outperform rating and a TP of HKD55. (ad/da) Auto-translated by AI This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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