Major Bank Rating | BOC International: Raises NIO's target price to $11, intensive product matrix will support high sales growth and improved performance

格隆汇 March 12｜BOCI International released a research report stating that NIO's revenue in the fourth quarter of last year increased significantly by 59% quarter-on-quarter, and its comprehensive gross margin improved by 3.7 percentage points to 17.5%, reaching a new high since 2022. Thanks to strict cost control and improved operating leverage, the company achieved its first-ever quarterly profit, with a non-GAAP net profit of 728 million yuan. Meanwhile, benefiting from strong operating cash inflow in the fourth quarter, the company's net cash increased by 9.9 billions yuan quarter-on-quarter, pushing year-end cash reserves close to 46 billions yuan.The bank pointed out that the guidance for the first quarter of this year implies that March deliveries will rebound to 32,000–35,000 units, and revenue per vehicle will rise quarter-on-quarter to 303,000–306,000 yuan, both exceeding market expectations. Even though the industry as a whole remains weak, management has a positive outlook for the first quarter's vehicle gross margin, expecting it to stabilize at 18% in the fourth quarter of 2025. This year, the company will address rising cost pressures by optimizing the supply chain and upgrading its product structure towards high-margin large vehicles, aiming to achieve operating profitability for the full year.The bank slightly raised its sales forecast for the group in 2026–2027 to 450,000–540,000 units, and the intensive product matrix will strongly support its high sales growth and improved performance. The bank raised NIO's target price to $11, with a rating of "Buy."