CICC maintains a "outperform" rating on Nio-SW (09866) with a target price of 54 Hong Kong dollars.

CICC released a research report stating that they maintain a "outperform industry" rating for NIO-SW (09866), with Non-GAAP net profit unchanged for 2024/25, a target price of 54 Hong Kong dollars/7 US dollars, both corresponding to a 1.5x EV/Rev for 2024. The Hong Kong and US stocks have an upside potential of 53%/54% respectively compared to the current stock price. The company held NIO Day in Guangzhou on December 21st. CICC's main points are as follows: The flagship sedan ET9 is officially launched, the industry's first mass-produced steer-by-wire technology. The price of ET9 is 788,000 yuan, after the BaaS model the price is 660,000 yuan, with a simultaneous release of 999 units of the First Edition limited edition, priced at 818,000 yuan. The company has officially sold out the limited edition, and overall ET9 orders are in line with the company's expectations. In terms of delivery schedule, ET9 is scheduled to start deliveries in March 2025. Overall, ET9 incorporates twelve in-house developed technologies, bringing nine major innovations in flagship experience including design, space, comfort, sound, intelligent systems, autonomous driving, safety, power systems, and passenger experience. For example, the X-Traffic fully active suspension system is the industry's first mass-produced steer-by-wire system. Overall, ET9 shows strong competitiveness compared to rival models like the Audi A8L and BMW 7 Series. Launch of the Firefly brand, entering the high-end small car market. The company has officially launched the new intelligent electric high-end small car brand firefly, inspired by the agile, energetic, and lively characteristics of fireflies. It is mainly aimed at users who are free-spirited and confident and love life, upholding the brand spirit of "freedom to glow." Leveraging NIO's ten years of research, design, safety standards, and smart technology, Firefly is expected to achieve differentiation in competitive models like Smart and Mini. The pre-sale price of the first product is 148,800 yuan, and it is planned to be officially launched in April 2025. The forecast suggests that the price may further decrease under the BaaS model. 2025 brings a stronger product cycle, with financials expected to continue improving. NIO plans to deliver over 10,000 vehicles in December, gradually building up to a capacity of 20,000 vehicles per month. The company anticipates exceeding 20,000 sales for its main brand in December, with the overall sales expected to exceed 30,000 units. Looking ahead to 2025, the company is expected to have a stronger product cycle, with plans for the ET9, Firefly's first model, and revisions to existing models contributing to increased deliveries. From a financial perspective, with increased sales, CKH HOLDINGS will reduce costs, and the company disclosed in the 3Q earnings call a planned gradual increase in gross profit margins for NIO/LeDao to 15%/20%.