Yifan Wang. By
Shares of Chinese electric car maker NIO Inc jumped in Hong Kong on Tuesday, posting strong gains overnight on Wall Street.
The stock rose 17% to HK$168 as trading resumed in the Asian market after the holiday on Monday. NIO’s US depository receipts were up 14% at USD 21.75 at the close of Monday’s market.
Based on insurance data, NIO’s August retail sales outperformed most major rivals, Citi analysts said in a note late Friday.
Analysts, citing new data from widely-followed auto industry consulting company ThinkCar, said NIO’s retail sales are expected to grow 63% annually in August, ahead of main domestic rivals, such as Xpeng Inc and Xpeng Inc. Lee is outperforming Auto. Inc.
Analysts at CITIC Securities said in a note on Sunday that the strong selling momentum could be a result of NIO’s leadership in the luxury electric-vehicle market. “High End Brand” [such as NIO] can generally enjoy less competition and better profitability” thanks to demand stability, consumption upgrades and higher industry concentration, analysts said. They reiterated their buy call on NIO with a target price of HK$181.
NIO said last week that its second-quarter net profit jumped more than four times year over year, while revenue grew 22%.
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Credit: www.marketwatch.com /