External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

<ul><li>Maintain HOLD. NIO’s all-time high R&amp;D and SG&amp;A expenses in 4Q23 once again confirm that it is probably too difficult for the company to control costs.</li><li>The cash burn from CYVN’s capital injection may last shorter than we expected before. We see no sign or persuasive strategies to turn profitable from the earnings call.</li><li>We believe management’s guidance for FY24E GPM could be too optimistic.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Maintain HOLD. NIO’s all-time high R&amp;D and SG&amp;A expenses in 4Q23 once again confirm that it is probably too difficult for the company to control costs.The cash burn from CYVN’s capital injection may last shorter than we expected before. We see no sign or persuasive strategies to turn profitable from the earnings call.We believe management’s guidance for FY24E GPM could be too optimistic.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

NIO Inc. (NIO US) - Cash Burn Speeds up with Capital Injection

<ul><li>Maintain HOLD. We project NIO’s 4Q23 net loss to narrow QoQ to RMB4.4bn with a GPM improvement.</li><li>However, such GPM lift could still result in a net loss of RMB14.6bn in FY24E on our estimates.</li><li>Although the capital injection from CYVN could probably support NIO’s cash burn for two years, we think NIO still needs to lay out persuasive strategies to turn profitable to increase investors’ confidence, especially for its second brand launch in 2H24, as the NIO brand lacks new models in 1H24.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Maintain HOLD. We project NIO’s 4Q23 net loss to narrow QoQ to RMB4.4bn with a GPM improvement.However, such GPM lift could still result in a net loss of RMB14.6bn in FY24E on our estimates.Although the capital injection from CYVN could probably support NIO’s cash burn for two years, we think NIO still needs to lay out persuasive strategies to turn profitable to increase investors’ confidence, especially for its second brand launch in 2H24, as the NIO brand lacks new models in 1H24.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

NIO (NIO US) - Need Persuasive Strategies to Turn Profitable

Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

<ul>
<li>East Buy's stock price plunged after a conflict broke out between the top broadcaster and the management team.</li>
<li>NIO will launch another brand for low price products, following BYD’s low price and Li Auto’s price reduction.</li>
<li>Tencent will move its unimportant assets to China Literature again.</li>
</ul>


East Buy's stock price plunged after a conflict broke out between the top broadcaster and the management team.
NIO will launch another brand for low price products, following BYD’s low price and Li Auto’s price reduction.
Tencent will move its unimportant assets to China Literature again.


China Consumption Weekly: East Buy, NIO, Tencent, PDD, Alibaba, JD.com

Articles from Caixin Global, Caixin Global

Caixin Global

Articles from Caixin Global

Caixin is a media group dedicated to providing financial and business news through periodicals, online content, mobile apps, conferences, books and TV/video programs. Caixin aims to blaze a trail that helps traditional media prosper in the new media age through integrated multimedia platforms.

News from Caixin

<ul><li>Electric-vehicle (EV) startup Nio Inc. looks set to begin building its cars independently, announcing plans to acquire two manufacturing assets shortly after a subsidiary was added to a government database for companies approved to produce vehicles.</li><li>Nio on Tuesday entered into “definitive agreements” to buy equipment and assets from two “advanced manufacturing” bases from state-owned automaker Anhui Jianghuai Automobile Group Corp. Ltd. (JAC) (<a href="https://www.smartkarma.com/600418.SH" target="_blank" rel="noopener">600418.SH</a> +1.67%) for approximately 3.16 billion yuan ($443 million), excluding tax, according to a Hong Kong Stock Exchange filing accompanying its third quarter results the same day.</li><li>JAC has been producing all of Nio’s cars on a contract basis since 2018.</li></ul>

Electric-vehicle (EV) startup Nio Inc. looks set to begin building its cars independently, announcing plans to acquire two manufacturing assets shortly after a subsidiary was added to a government database for companies approved to produce vehicles.Nio on Tuesday entered into “definitive agreements” to buy equipment and assets from two “advanced manufacturing” bases from state-owned automaker Anhui Jianghuai Automobile Group Corp. Ltd. (JAC) (600418.SH +1.67%) for approximately 3.16 billion yuan ($443 million), excluding tax, according to a Hong Kong Stock Exchange filing accompanying its third quarter results the same day.JAC has been producing all of Nio’s cars on a contract basis since 2018.

Nio Gears Up to Make Its Own EVs After Permit Approval, Equipment Purchases 

<ul><li>Maintain HOLD. Despite NIO’s 3Q23 earnings beat on R&amp;D and SG&amp;A, its 4Q23 sales guidance could imply a tough FY24, in our view.</li><li>We see little chance for NIO to achieve double-digit GPM in FY24E given the lingering drag from battery swap.</li><li>We believe the limited GPM lift from the completion of the NT2.0 shift and acquiring plants from JAC (600418 CH, NR) could not offset its heavy SG&amp;A and R&amp;D, even as it finally plans to cut non-core projects. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Maintain HOLD. Despite NIO’s 3Q23 earnings beat on R&amp;D and SG&amp;A, its 4Q23 sales guidance could imply a tough FY24, in our view.We see little chance for NIO to achieve double-digit GPM in FY24E given the lingering drag from battery swap.We believe the limited GPM lift from the completion of the NT2.0 shift and acquiring plants from JAC (600418 CH, NR) could not offset its heavy SG&amp;A and R&amp;D, even as it finally plans to cut non-core projects. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

NIO Inc. (NIO US) – Back to Square One?

China

NIO Inc. manufactures and sells automobiles. The Company offers electric vehicles and parts, as well as provides battery charging services. NIO serves customers worldwide.

NIO (NIO US)

NIO Inc. (NIO US) - Cash Burn Speeds up with Capital Injection

Maintain HOLD. NIO’s all-time high R&D and SG&A expenses in 4Q23 once again confirm that it is probably too difficult for the company to control...

CMB International

NIO (NIO US) - Need Persuasive Strategies to Turn Profitable

Maintain HOLD. We project NIO’s 4Q23 net loss to narrow QoQ to RMB4.4bn with a GPM improvement. However, such GPM lift could still result in a net...

CMB International

China Consumption Weekly: East Buy, NIO, Tencent, PDD, Alibaba, JD.com

East Buy plunged after a conflict broke out between the top broadcaster and the management team. NIO will launch a second brand for low price...

Ming Lu

Nio Gears Up to Make Its Own EVs After Permit Approval, Equipment Purchases

Electric-vehicle (EV) startup Nio Inc. looks set to begin building its cars independently, announcing plans to acquire two manufacturing assets...

Caixin Global

NIO Inc. (NIO US) – Back to Square One?

Maintain HOLD. Despite NIO’s 3Q23 earnings beat on R&D and SG&A, its 4Q23 sales guidance could imply a tough FY24, in our view.

CMB International