CICC: Maintains Buy rating on Nio-SW with target price of 65.83 Hong Kong dollars.

Guotai Junan International released a research report saying it maintains a buy rating on Nio-SW with a target price of 65.83 Hong Kong dollars. The core significance of this quarter is that Nio has entered a stage of operational validation from sales recovery to ASP improvement, stable gross margin, and shrinking expense ratio. In the short term, the focus will be on realizing the key points guided by 2Q26 in June for delivery ramp-up 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% overall gross margin can be maintained under cost pressure, and the continuity of non-GAAP operating profit. If ES9, ES8 five-seater version, and the Le Diao L80 continue to be realized, the key to the company's valuation reshaping will shift to the continuity of operating profit and the visibility of cash flow.