HK Stock Market Move | NIO-SW(09866) rose nearly 7% in early trading, NIO ES8 five-seater version has started first batch deliveries.

NIO-SW(09866) rose nearly 7% in early trading, up 5.13% as of the time of publication, at HK$39.32, with a turnover of HK$70.923 million. On the news front, on July 10th, the NIO ES8 five-seater version began delivery in more than ten cities across the country. NIO founder, chairman, and CEO Li Bin stated that the launch of the ES8 five-seater version will accelerate the entry of large five-seater SUVs into the pure electric era, just like the ES8 did for high-end large three-row SUVs. It is reported that NIO ES8 achieved 120,000 deliveries in 275 days and has been the best-selling large SUV and 400,000-level model in the market for six consecutive months. BOCOM INTL previously pointed out that in the short term, the focus of the fulfillment of the second quarter guidance is on the delivery ramp-up in June and the conversion of ES9 and L80 orders; in the medium term, the market will pay more attention to the proportion of high-margin models, whether the target of 17%-18% gross profit margin can be maintained under cost pressure, and the continuity of Non-GAAP operating profit. If ES9, ES8 five-seater version, and the L80 continue to deliver, the key to revaluing the company will shift to the continuity of operating profit and visibility of cash flow. Maintain a buy rating.