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NIO (SGX:NIO) reported its 1Q26 results on 21st May 2026, after HK market closed. Revenue grew 112% y-o-y to RMB25.5bn, in-line with consensus estimates, in which vehicle sales/other sales grew 129%/31% y-o-y respectively.
- - Read this at SGinvestors.io -
1Q26 marks second consecutive profitable quarter.
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Better product mix led gross margins to expand 11.4ppt to 19.0%, 3.0ppt ahead of consensus. NIO’s enhanced operational efficiencies continued, with R&D/SG&A expense narrowing 40%/21% y-o-y to RMB1.9bn/3.5bn, respectively.
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As a result, NIO recorded adj. net profit of RMB44.5mil for 1Q26 (vs RMB6.3bn loss in 1Q25), well ahead of market expectations’ RMB797mil loss.
Strong 2Q26 guidance.
- - Read this at SGinvestors.io -
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While NIO expects rising material costs (battery, memory shortage) to result in a RMB10,000 negative effect per vehicle (2-3ppt margin drag), we expect most of the headwinds to be offset by a better product mix, with GP margin to stay above 17%.
Maintain BUY
- Read more at SGinvestors.io.
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/.
Raphael TSE DBS Group Research | Elizabelle PANG DBS Group Research | https://www.dbs.com/insightsdirect/ 2026-05-22
Previous report by DBS:
2026-03-16 NIO Inc - Catalysts In Place For Re-rating.
Price targets by other brokers at NIO Target Prices.
Listing of research reports at NIO Analyst Reports.
Relevant links:
NIO Share Price History,
NIO Announcements,
NIO Dividend Payout Dates & Corporate Actions,
NIO News
