NIO Inc (SGX:NIO) recorded revenue of RMB17.1bn in 4Q23 (+6.5% y-o-y, -10% q-o-q), in-line, of which vehicle sales were RMB15.4bn (+4.6% y-o-y, -11% q-o-q). Although vehicle deliveries increased 25% y-o-y to over 50k, it was largely offset by lower ASP (-16.3% y-o-y,-1.8% q-o-q) due to intensified competition and a change in sales mix.
4Q23 net loss per share missed due to larger-than-expected loss from other sales.
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The 4Q23 non-GAAP net loss to shareholders amounted to RMB5.6bn, translating to non-GAAP net loss of RMB2.81 per share, narrowing by 8.5% y-o-y but missing consensus by ~4%, largely due to larger-than-expected losses from other sales.
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Management guided for a slower 1Q24 growth due to model cycle change; vehicle sales growth for FY24F cut.
Management of NIO expects 1Q24 total revenue to be between RMB10.5-11.1bn (-1.7% to +3.8% y-o-y), supported by anticipated vehicle deliveries between 31-33k units (-0.1% to +6.3% y-o-y). Based on 2M24 deliveries of 18.2k units, it implies Mar ‘24 deliveries at 12.8-14.8k units.
The slower-than-expected growth in 1Q24 is largely attributable to changing over to the 2024 model cycle, which is expected to impact production and sales temporarily.
Margin recovery expected in 2024.
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Above is an excerpt from a report by DBS Group Research. Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.
