NIO Achieves Non-GAAP Profit for Two Consecutive Quarters

NIO Inc. has reported a non-GAAP profit of 45 million yuan for the first quarter, aligning with market expectations, according to Jin10. The company has demonstrated disciplined spending, reflecting effective operational expense control measures. NIO's domestic model synergy is expected to enhance its market share in the luxury segment, with the ES8 and ES9 models diversifying its profit contributions. The firm forecasts sales to reach 441,000 units by 2026, achieving a full-year profit turnaround. Based on NIO's strong performance in the luxury segment and improved expense control, the company has raised its 2026 revenue and net profit forecasts by 18.9% and 104.1%, respectively, to 133.48 billion yuan and 277 million yuan. The firm maintains an "outperform" rating for NIO's U.S. shares, raising the target price from $6 to $7. Additionally, it has initiated coverage of NIO's H-shares with an "outperform" rating and a target price of 55 HKD.