Analytical judgment:
1. Low wind resistance, large space shape, maximizing the interior space of the car. The Ledao L60 is positioned as a mid-size SUV, with body size 4828*1930*1616mm/wheelbase 1950mm; the body is designed with low wind resistance and large space, with a wind resistance coefficient of 0.229; it can accommodate 5 suitcases when fully seated, with plenty of storage space.
2. Supported by 1000 power exchange stations, the energy replenishment experience is extremely competitive. Power exchange = increased range of the pure electric version. Small batteries in urban areas and large batteries can greatly reduce users' car purchase costs; when delivered, Ledao has 1000 power exchange stations, making the energy replenishment experience extremely competitive.
3. Equipped with urban NOA function as standard, smart driving is easy to use all over the country. The Ledao L60 is equipped with a single Nvidia Orin X chip as standard. Based on NIO's full-stack intelligent driving capability, Ledao intelligent driving can be operated nationwide; all Ledao L60 models are equipped with 30 high-performance sensing hardware as standard, including 7 8 megapixel high-definition cameras, 1 4D millimeter wave radar, and 4 Starlight 360 cameras. The camera configuration is the same as NIO, which can maximize the use of data.
Investment advice
Relying on the strong moat of power exchange, NIO had the largest share of the pure electricity market of more than 300,000 in the second half of 2023 (data from 21st Century Economic Report); the sub-brand Ledao delivered 1,000 power exchange stations, which is expected to have a strong share of the 20-30,000 mainstream household market. We anticipate 2024-2026 revenue of $738.93, 167.577, and $239.146 billion; net profit to mother of -179.54, -44.00, 6.766 billion yuan; EPS of -8.66, -2.12, and 3.26 yuan; closing price of HK$40.95 on May 31, 2024, corresponding to 2024-2026 PE of -4.37, -17.84, 11.60 times; first coverage, giving a “gain” rating.
Risk warning
Production capacity climbed short of expectations, progress in intelligent driving technology fell short of expectations, etc.