Pacific Securities has a purchase ranking on Nio’s Hong Kong-traded shares, with a goal value of HK$103.62, implying an upside of 26.14 p.c.
China-based brokerage Pacific Securities initiated protection of Nio (NYSE: NIO) with a Purchase ranking, saying the electrical car (EV) maker’s weekly gross sales efficiency has been stellar and July deliveries are anticipated to hit a file excessive.
Nio is anticipated to launch a brand new entry-level SUV later this yr, and is on monitor to ship 160,000 autos for the complete yr, pushed by the brand new mannequin and the brand new ES6 and ET5 Touring, Pacific Securities analyst Wen Ji stated in a analysis word on July 18.
The analyst did not point out something extra concerning the new mannequin, although it will be the brand new EC6 coupe SUV.
Nio has continued to modify fashions primarily based on the NT 1.0 platform to the most recent NT 2.0 platform over the previous few months, and the EC6 is the one one left that has but to finish the swap. Spy pictures of the brand new EC6 have been already seen on the streets of China a month in the past.
The EV maker launched the brand new ES6 on Could 24, with deliveries beginning on the identical night time of the launch. The ET5 Touring was launched on June 15, with deliveries beginning on June 16.
Pushed by trade restoration, platform improve, value minimize and the rollout of Metropolis NOP+, Nio’s second-half gross sales rebound pattern is evident, Pacific Securities stated.
Nio is anticipated to see month-to-month deliveries of over 15,000 models within the third quarter and month-to-month gross sales of as much as 20,000 models within the fourth quarter, in accordance with the analyst.
Notably, Nio’s administration had stated earlier this yr that the corporate was focusing on to double its gross sales this yr from final yr. Nio delivered a complete of 122,486 autos in 2022 and doubling that may imply greater than 240,000 models.
Within the first half of the yr, Nio delivered 54,561 autos, up simply 7.35 p.c from 50,827 in the identical interval final yr.
Nio bought 3,900 models final week, up 25.81 p.c from 3,100 models within the earlier week, in accordance with knowledge shared by Li Auto yesterday.
Between July 1 and July 16, the Nio bought 8,000 models, in accordance with Li Auto’s desk.
Taking a look at weekly insurance coverage registration knowledge, Nio gross sales continued to develop within the second week of July, primarily as a result of full swap to the NT 2.0 platform for its fashions, coupled with an RMB 30,000 ($4,150) discount within the beginning costs for your entire mannequin lineup, Pacific Securities stated.
Looking forward to the third and fourth weeks of July, insurance coverage registrations of Nio autos are anticipated to proceed to climb, the brokerage’s analysis word stated.
Pacific Securities expects Nio to generate income of RMB 53.19 billion, RMB 110.3 billion and RMB 133.8 billion from 2023 to 2025, respectively.
The analyst expects Nio to publish a lack of RMB 15.63 billion in 2023, a lack of RMB 8.68 billion in 2024, and a revenue of RMB 640 million in 2025.
Pacific Securities has a Purchase ranking and a HK$103.62 value goal on Nio’s Hong Kong-traded shares.
Nio closed down 0.48 p.c to HK$82.15 in Hong Kong right this moment, and the worth goal implies an upside of 26.14 p.c.
($1 = RMB 7.2220)
China EV insurance coverage registrations for week ending Jul 16: Tesla 10,000, Li Auto 7,700, Nio 3,900, Xpeng 2,100