HSBC lowers NIO's target price to 32.1 yuan, expects sales pressure

AASTOCKS
2025.06.10 04:10

HSBC's research report indicates that NIO (09866.HK) narrowed its net loss by 3% quarter-on-quarter in the first quarter, while sales fell 42% quarter-on-quarter. The gross margin for vehicles decreased by 3 percentage points quarter-on-quarter, reflecting inventory clearance discounts for the 5566 series. The bank expects the group to improve operational efficiency and implement cost-reduction measures in the coming quarters, such as optimizing human resources and cutting low-return projects.

In terms of sales, although the product cycle is positive, the bank anticipates that reduced consumer spending and intensified competition from new models will continue to pressure sales targets. As a result, it has lowered its sales forecast for the full year 2025 by 9% to 330,000 vehicles and reduced its profit forecast for 2025 to 2026 by 3% to 6%, with a gross margin forecast cut by 0.9 percentage points. The target price for Hong Kong stocks has been lowered from HKD 34.9 to HKD 32.1, while the target price for NIO (NIO.US) in the US stock market has been reduced from USD 4.5 to USD 4.1, maintaining a "Hold" rating

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