HK Stock Market Move | NIO-SW (09866) rises over 4%; the company's balance sheet financing pressure has been eliminated, and product portfolio renewal will become the core growth engine going forward.

NIO-SW (09866) rose over 4%, up 4% as of press time, at HK$29.12, with a turnover of HK$81.7782 million. On the news front, Morgan Stanley noted in a research report that NIO-SW's management reiterated that the company will prioritize profit growth through sales volume growth and operating leverage, and reaffirmed its goal of achieving non-GAAP adjusted profitability this year. In addition, the company expects to stabilize vehicle gross margin at around 18% through efficiency improvements. The bank believes that NIO's balance sheet financing pressure has been eliminated, and expects cash and equivalents to exceed RMB 60 billion in (the third quarter) and exceed RMB 70 billion next year, with the battery swap business expected to approach break-even within three years. UBS pointed out that despite intense competition in the domestic auto market, consumption power is rising, and the premium pure electric vehicle market continues to show strong resilience. This year, thanks to brand loyalty and its premium positioning, NIO has become one of the few brands that simultaneously achieved year-on-year sales growth of over 50%, rising average selling prices, and maintained monthly sales of over 10,000 units six months after new model launches. The bank believes that the renewal of the product portfolio will become NIO's core growth engine going forward.