EBSCN·2024-06-12 02:01Investment Rating - The report maintains a rating of "Buy" for NIO, indicating a positive outlook for the company's stock performance in the coming months [1]. Core Insights - NIO's total revenue for Q1 2024 was 9.91 billion RMB, reflecting a year-on-year decrease of 7.2% and a quarter-on-quarter decrease of 42.1%. The gross margin improved by 3.4 percentage points year-on-year but decreased by 2.6 percentage points quarter-on-quarter to 4.9% [1]. - The company reported a Non-GAAP net loss attributable to shareholders of 4.90 billion RMB, which widened by 18.2% year-on-year but narrowed by 1.0% quarter-on-quarter [1]. - NIO's vehicle deliveries in Q1 2024 were 30,000 units, down 3.2% year-on-year and 39.9% quarter-on-quarter, with automotive revenue of 8.38 billion RMB, a decrease of 9.1% year-on-year and 45.7% quarter-on-quarter [1]. - The management expects Q2 2024 deliveries to increase by 79.7% to 86.3% quarter-on-quarter, reaching between 54,000 and 56,000 units [1]. - NIO's cash reserves stood at 45.3 billion RMB as of the end of Q1 2024, providing a solid financial foundation for future operations [1]. Summary by Sections Financial Performance - Q1 2024 total revenue was 9.91 billion RMB, with a gross margin of 4.9% [1]. - Non-GAAP net loss attributable to shareholders was 4.90 billion RMB [1]. - Q1 2024 vehicle deliveries were 30,000 units, with automotive revenue of 8.38 billion RMB [1]. Strategic Initiatives - NIO is focusing on its battery swapping business, with 2,427 battery swap stations and over 22,000 charging piles nationwide [1]. - The company plans to launch its new brand, "Ladao," with the first model, L60, expected to be delivered in September 2024 [1]. - NIO aims to achieve a daily battery swap volume of 60 units to reach breakeven in its battery swapping business [1]. Future Outlook - The report projects NIO's net losses for 2024, 2025, and 2026 to be 16.97 billion, 15.96 billion, and 11.42 billion RMB, respectively [1]. - The target price for NIO's stock has been adjusted to $5.48, reflecting a valuation of approximately 1.2 times the 2024 estimated price-to-sales ratio [1].