NIO Inc ADR

NIO: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$8.60	Mbd	Czwktzbq

Nio Earnings: Vehicle Margin Still Depressed but Recovery In Sight

Vincent Sun

Jun 12, 2023

Nio’s first-quarter revenue was close to the low end of its guidance. Vehicle margin declined 13 percentage points year over year to 5.1% due to product mix change and promotions on older models. However, management indicated that vehicle margin will stage a sequential recovery in the second half on better product mix. With enlarged losses on softer vehicle margin and rising operating expense ratios, we increase our net loss forecasts for 2023-24. We reduce our fair value estimate to USD 14.00 per ADS (HKD 108 per share) from USD 15.50 (HKD 120). Our fair value implies a forward price/sales ratio of 2.6 times.

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