HAITONG INT'L: Raise target price of Ideal Car (02015) to 83.29 Hong Kong dollars. Product cycle and technological investment support the medium to long-term development.

HAITONG INT'L released a research report stating that NIO (02015) achieved revenue of 28.8 billion RMB in the fourth quarter of last year, a decrease of 35% year-on-year, which is basically in line with market expectations; among which, car sales revenue was 27.3 billion RMB, a decrease of 36%, mainly affected by the decrease in quarterly delivery volume. Quarterly deliveries were approximately 110,000 vehicles, still maintaining a relatively high scale among new forces. NIO was valued at 1.3 times the market-sales rate in 2026, with a target price raised to 83.29 Hong Kong dollars, maintaining a "neutral" rating. The bank pointed out that NIO's profitability was affected by changes in product structure and price competition, and the vehicle gross profit margin has fallen from its peak, with a gross profit margin of 16.8% in the fourth quarter of last year. The company achieved revenue of 112.3 billion RMB in 2025, breaking one hundred billion for the third consecutive year and remaining profitable, but non-GAAP net profit was 2.4 billion RMB, a decrease of 78% year-on-year. Due to pressure on recent sales, profitability is expected to be affected by factors such as purchase tax rebates, inventory clearance, and rising raw material prices. The bank's recent view is somewhat negative, but it still believes that long-term growth is promising. The bank expects the company's revenue expectations for 2026 to 2028 to be 122.2 billion, 153.8 billion, and 164.6 billion RMB, respectively, with flat performance, a 12% increase, and a new introduction.