Golden Stream Financial News | Bocom Intl released research reports, stating that NIO (09866) announced its performance for the third quarter of 2024, with a revenue of 18.7 billion yuan (RMB, the same below), -2.1%/+7.0% year-on-year/month-on-month, slightly lower than expected. The gross margin is 10.7%, slightly higher than the market expectations. The automotive gross margin is 13.1%, a 0.9 percentage point improvement month-on-month, which the bank believes is mainly due to cost reduction. The net loss/adjusted net loss in the third quarter was 5.01 billion yuan/4.41 billion yuan, basically flat compared to the second quarter.

NIO expects deliveries in the fourth quarter to be between 0.072 million units and 0.075 million units, a year-on-year growth of 43.9% to 49.9%. The sales guidance is slightly lower than expected, indicating an average delivery of about 0.026-0.027 million units in November and December.

The bank points out that next year's sales growth will mainly come from the Leland, 6-7 seater SUVs, and large 5-seater SUVs compared to the Ideal L7 and L8. Management guidance suggests that after the increase in Leland, the gross margin will be maintained at over 15%. The bank maintains a buy rating with a target price of HK$59.88/US$7.7 (NIO US). The current price corresponds to the bank's sales forecast of 0.7 times the 2025 p/s, lower than Xiaopeng/Idean's 1.2 times/0.9 times.