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 2Q23 earnings missed our prior forecast on lower GPM, higher R&amp;D and SG&amp;A expenses.</li><li>Its 3Q23 sales guidance may imply that the sales boost from the previous price cuts could be short-lived, or at least lower than some investors’ expectation.</li><li>More importantly, we have not seen its profitability turnaround signals, as losses from other revenue continue with the prior price cut and no signs to scale back its R&amp;D and SG&amp;A expenses.</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 2Q23 earnings missed our prior forecast on lower GPM, higher R&amp;D and SG&amp;A expenses.Its 3Q23 sales guidance may imply that the sales boost from the previous price cuts could be short-lived, or at least lower than some investors’ expectation.More importantly, we have not seen its profitability turnaround signals, as losses from other revenue continue with the prior price cut and no signs to scale back its R&amp;D and SG&amp;A expenses.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) – Little Sign of Profit Turnaround After 2Q23 Miss

<ul><li>Maintain HOLD. We project NIO’s net loss in 2Q23E to be similar to 1Q23, at around RMB 4.9bn.</li><li>We estimate that its recent price cuts on margin dent to be limited in FY23E but more severe in FY24-25E.</li><li>Such price cuts could also make its new brand less differentiated from the NIO brand, in our view.</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 net loss in 2Q23E to be similar to 1Q23, at around RMB 4.9bn.We estimate that its recent price cuts on margin dent to be limited in FY23E but more severe in FY24-25E.Such price cuts could also make its new brand less differentiated from the NIO brand, in our view.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) – Margin dent from price cuts lingers into FY24-25

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 maker Nio Inc. ended its holdout in China’s car price war and slashed base prices on all of its vehicles by 30,000 yuan ($4,200) in hopes of bolstering sales amid escalating competition in China, the world’s largest auto market.</li><li>Nio also pulled the plug on its free battery-exchange service for car buyers and introduced a pay-as-you-go system and a 30,000 yuan lifetime swap service.</li><li>The vehicle price cuts announced Monday will reduce the starting price of Nio’s new electric SUV ES6 to 338,000 yuan. The price of the mid-size electric sedan model ET5 will be lowered to 298,000 yuan. The changes take effect immediately, Nio said.</li></ul>

Electric-vehicle maker Nio Inc. ended its holdout in China’s car price war and slashed base prices on all of its vehicles by 30,000 yuan ($4,200) in hopes of bolstering sales amid escalating competition in China, the world’s largest auto market.Nio also pulled the plug on its free battery-exchange service for car buyers and introduced a pay-as-you-go system and a 30,000 yuan lifetime swap service.The vehicle price cuts announced Monday will reduce the starting price of Nio’s new electric SUV ES6 to 338,000 yuan. The price of the mid-size electric sedan model ET5 will be lowered to 298,000 yuan. The changes take effect immediately, Nio said.

Nio Ends Holdout in China’s Auto Price War

<ul><li>We downgrade NIO’s rating to HOLD from Buy as heightened competition drags its sales growth more severely than expected.</li><li>NIO could face more challenges than its peers when its sales growth slows, amid its heavy investments, including battery swap, chips, mobile phones etc.</li><li>We are of the view that its decision making to cut non-core projects is too slow. </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.

We downgrade NIO’s rating to HOLD from Buy as heightened competition drags its sales growth more severely than expected.NIO could face more challenges than its peers when its sales growth slows, amid its heavy investments, including battery swap, chips, mobile phones etc.We are of the view that its decision making to cut non-core projects is too slow. 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) – Premiumization No Longer Stands for High Margin

Thematic (Sector/Industry)

<ul><li>China’s passenger-vehicle (PV) retail sales volume fell 1% YoY in first four months of 2023, 2% higher than our forecast made in Dec 2022.</li><li>Wholesale volume also rose 7% YoY YTD, 3% higher than our prior forecast, largely due to doubled PV exports in the first four months of 2023.</li><li>Automakers in China started to cut inventories in Apr 2023, as we had expected.</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.

China’s passenger-vehicle (PV) retail sales volume fell 1% YoY in first four months of 2023, 2% higher than our forecast made in Dec 2022.Wholesale volume also rose 7% YoY YTD, 3% higher than our prior forecast, largely due to doubled PV exports in the first four months of 2023.Automakers in China started to cut inventories in Apr 2023, as we had expected.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.

China Auto Sector – Mixed picture ahead as inventory risk lingers

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) – Little Sign of Profit Turnaround After 2Q23 Miss

Its 3Q23 sales guidance may imply that the sales boost from the previous price cuts could be short-lived, or at least lower than some investors’...

CMB International

NIO Inc. (NIO US) – Margin dent from price cuts lingers into FY24-25

Maintain HOLD. We project NIO’s net loss in 2Q23E to be similar to 1Q23, at around RMB 4.9bn. We estimate that its recent price cuts on margin dent...

CMB International

Nio Ends Holdout in China’s Auto Price War

Electric-vehicle maker Nio Inc. ended its holdout in China’s car price war and slashed base prices on all of its vehicles by 30,000 yuan ($4,200)...

Caixin Global

NIO Inc. (NIO US) – Premiumization No Longer Stands for High Margin

We downgrade NIO’s rating to HOLD from Buy as heightened competition drags its sales growth more severely than expected.

CMB International

China Auto Sector – Mixed picture ahead as inventory risk lingers

China’s passenger-vehicle (PV) retail sales volume fell 1% YoY in first four months of 2023, 2% higher than our forecast made in Dec 2022.

CMB International