NIO (SGX:NIO) delivered a solid recovery, with vehicle sales up 15% y-o-y and 19% q-o-q to RMB19.2bn, supported by a 20.8% q-o-q rise in deliveries to 87,071 units, including a 43% contribution from ONVO.
3Q25 results beat expectations on stronger margins and lower R&D spend.
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Blended gross margin reached 13.9%, lifting gross profit by 51% y-o-y and 59% q-o-q. Operating expenses fell to 30% of revenue as R&D dropped 28% y-o-y and SG&A stayed disciplined. Non-GAAP net loss narrowed to RMB2.76bn, improving 37% y-o-y and 33% q-o-q.
Stronger volumes, expanding margins, and better operating leverage move NIO closer to breakeven.
A strong financial position to support growth but overall market remains challenging.
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For 4Q25, NIO guided vehicle deliveries of 120–125k units (up 65.1–72% y-o-y) and total revenue of RMB32.7–34.0bn (up 66.3–72.8% y-o-y). On a mid-point basis, guidance is 8.5% below market expectations for deliveries and 3.5% below for revenue.
Mix improvement is expected to lift 4Q vehicle margin to 18%, up 3.3ppts q-o-q, and NIO reiterated its target of breakeven in 4Q25.
Looking into 2026, NIO plans to launch three large-segment models to strengthen its sales outlook and support further margin and profitability improvements.
Valuation summaries
Target prices unchanged at HKD52.00/US$6.60.
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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/.
