BEIJING, April 22, 2024 (GLOBE NEWSWIRE) -- Niu Technologies ("NIU" or "the Company") (NASDAQ:NIU), the world's leading provider of smart urban mobility solutions, today announced that it will report its financial results for the first quarter 2024 before the U.S. market opens on Monday, May 20, 2024. The corporate presentation and financial spreadsheets will be posted on NIU's investor relations website at:https://ir.niu.com/financial-information/quarterly-results The Company will host an earnings conferen ...

Industry Overview - The electric vehicle (EV) industry is facing significant challenges, with valuations declining as investors question long-term pricing and competition [1] - Tesla, a leader in the EV market, is experiencing price cuts and profit slumps due to tougher economic conditions [1] - Investor interest is shifting towards more promising opportunities in the AI sector, putting additional pressure on EV stocks [1] Niu Technologies - Niu Technologies designs, manufactures, and sells electric motorcycles and scooters, primarily in China, and also offers spare parts and branded apparel [2] - The company is expected to generate revenues of approximately $470 million in 2024, with analysts predicting a profit of $0.20 per share, resulting in an 8.5 times P/E ratio [3] - Earnings are projected to increase by 50% in the following year, potentially lowering the P/E ratio to less than six times estimated 2025 earnings [3] Toyota Motor - Toyota's North American division reported a 22% increase in overall sales, with electrified vehicle sales soaring by 61% year-over-year in March 2024 [5] - The company sold 78,157 electric vehicles in March, accounting for 36% of its total sales, indicating a significant shift towards EVs [5] - Toyota maintains strong profitability, trading at less than 11 times forward earnings, supported by its size, brand strength, and international distribution [6] Sociedad Química y Minera de Chile (SQM) - SQM is positioned to benefit from the long-term growth of the electric vehicle market, despite current downtrends affecting lithium mining firms [7] - The company has access to large, low-cost lithium reserves in Chile and is one of the dominant players in the global lithium market [8] - Even with declining profits, SQM's shares are trading for less than 10 times forward earnings, and the company has a strong history of paying dividends [8]

Core Insights - Niu Technologies reported a total sales volume of 129,139 units in Q1 2024, representing a 37% increase compared to 94,407 units in Q1 2023 [2] - The company achieved significant growth in both domestic and international markets, with sales in China increasing by 35% and international sales rising by 48% year-over-year [2] - The launch of new products, particularly the premium flagship model NXT, has contributed to over 50% of total sales in the domestic market, with the NXT model alone accounting for 26% of domestic sales [2][3] Domestic Market Performance - In the Chinese market, Niu sold 110,115 units in Q1 2024, up from 81,518 units in Q1 2023 [2] - The NXT model received over 10,000 pre-orders within two weeks of its launch, indicating strong market demand [2] International Market Performance - Niu's international sales reached 19,024 units in Q1 2024, compared to 12,889 units in Q1 2023 [2] - The company has expanded its retail presence in key markets such as the US, Germany, France, and Spain, enhancing its global footprint in the electric two-wheeler market [3] Future Outlook - Niu Technologies anticipates regaining growth momentum in 2024, driven by new product launches and the expansion of sales channels [3]

Investment Thesis - Niu Technologies is currently undervalued despite having multiple growth drivers that are expected to enhance revenues in the future [2] - The company focuses on electric scooters, a niche market with significant growth potential, especially as the global trend shifts towards electric vehicles [2] - Niu Technologies is anticipated to achieve profitability within the next 2-3 years as it expands internationally and resolves operational challenges [2] Company Overview - Niu Technologies is a Chinese manufacturer specializing in electric scooters and motorcycles, with a diverse product portfolio that includes six electric scooter series, one kick-scooter series, and one e-bike series [3] - The company emphasizes user-friendly designs and integrates its products with an app for enhanced functionality [3] Sales Performance - In 2022, the Gova and UQi series accounted for approximately 75% of total unit sales, with Gova targeting the mid-level e-scooter market and UQi designed to be ultra-light and compact [4] - Total unit sales for 2022 reached approximately 831,593 units, with a significant decline in 2023 attributed to operational disruptions and the impact of lithium battery price hikes [5][6] Revenue Breakdown - In 2023, Niu Technologies generated total revenues of around $370 million, with 76% coming from electric vehicle sales in China, 13% from international sales, and 11% from accessories and services [5] - The company expects to see a rebound in sales volume, projecting 1 to 1.2 million units in 2024, representing a 50% increase from 2023 [8] Market Potential - The global electric scooter market is projected to grow from $15.22 billion in 2021 to $31.04 billion by 2028, with a CAGR of 10.7% [8] - Urbanization and the need for affordable commuting options are expected to drive demand for electric scooters, positioning Niu Technologies favorably in the market [8] Profitability Outlook - Analysts predict earnings of 20 cents in 2024 and 30 cents in 2025, with expectations that the company will return to profitability as operational issues are resolved and sales increase [9] - The decline in lithium battery prices is expected to contribute positively to profit margins, alongside a focus on premium products with better margins [10] Valuation - Based on projected revenues and conservative growth estimates, the fair value of Niu Technologies is estimated at $3 per share, indicating that the stock is trading close to net cash and represents a bargain opportunity [11]

Financial Data and Key Metrics Changes - In Q4 2023, total sales volume was 137,000 units, a slight year-over-year drop of 0.6% [5][35] - Total revenue for Q4 was RMB 478.7 million, a decrease of 21% compared to the previous year [5][35] - For the full year 2023, total sales volume reached 709,000 units, with total revenue of RMB 2.7 billion, reflecting a 15% decline year-over-year [5][38] Business Line Data and Key Metrics Changes - Sales volume in the China market decreased by 6.4% to 110,000 units, while overseas sales increased by 33% to 27,000 units [5][35] - In the China market, the average selling price (ASP) for scooters decreased by 15% year-over-year to RMB 32.16, while ASP for the premium series remained around RMB 5,000 [36] - Overseas scooter revenue, including kick-scooters, e-mopeds, and e-motorcycles, was nearly $60 million, with ASP decreasing by 49% year-over-year [36] Market Data and Key Metrics Changes - The international electric two-wheeler market faced challenges, including a decline in key European markets and operational disruptions due to distribution partner issues [7][11] - The micro-mobility segment saw a slight increase in sales volume of 0.5% year-over-year, with total activations doubling compared to 2022 [14][30] Company Strategy and Development Direction - The company remains focused on the premium market segment in China, enhancing product lines with new series like the Falcon and MQiL, which contributed significantly to sales [8][17] - Plans for 2024 include channel expansion into Tier 2 and Tier 3 cities and a focus on same-store sales growth through online and offline traffic optimization [16][24] - The introduction of new products, including the NX and NXT series, aims to target premium motorcycle and performance-driven electric bicycle segments [19][23] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in 2023, including the impact of lithium battery price hikes and cautious consumer spending in top-tier cities [6][11] - Despite these challenges, management expressed optimism for growth in 2024, anticipating sales volume to reach between 1 million to 1.2 million units [34] - The company plans to maintain a steady average selling price while expecting a slight increase in gross margin due to operational efficiencies [60][61] Other Important Information - The company ended 2023 with RMB 1,078 million in cash and short-term investments, with a positive outlook on future receivables collection [43] - The gross margin for Q4 was 19%, down 3.4 percentage points year-over-year, while the full-year gross margin was 21.5%, up from 21.1% [39][40] Q&A Session Summary Question: Store expansion plan and strategy - Management indicated a mix of reclaiming lost stores and opening new ones, focusing initially on the top 45 cities [47] Question: Evaluation of aggressive sales targets - Management emphasized the significant addressable market and the focus on product quality and channel expansion rather than competitor concerns [48] Question: Impact of Nanjing fire on battery safety - Management highlighted the importance of high-quality products and original parts, noting that many issues arise from third-party batteries [50] Question: User behavior analysis - Management noted that users typically keep scooters for about three to four years and emphasized plans to expand into lower-tier cities [51] Question: Sales volume target for 2024 - Management expects kick scooter sales to reach between 200,000 to 250,000 units, with the majority of electric two-wheeler sales in China [55] Question: Profit margin and product strategy - Management anticipates a stable average selling price and a slight increase in gross margin due to operational efficiencies [60][61] Question: Selling expense ratio guidance for 2024 - Management aims to maintain the selling expense ratio within 20% to 24% of revenue, returning to levels seen in early 2022 [63]

NIU at a glance ...

-- Fourth Quarter Revenues of RMB 478.7 million, down 21.8% year over year -- Fourth Quarter Net Loss of RMB 130.2 million, compared to net loss of RMB 37.1 million in the same period of last year -- Full Year Revenues of RMB 2,651.8 million, down 16.3% year over year -- Full Year Net loss of RMB 271.8 million, compared to net loss of RMB 49.5 million in 2022 BEIJING, March 18, 2024 (GLOBE NEWSWIRE) -- Niu Technologies ("NIU", or "the Company") (NASDAQ:NIU), the world's leading provider of smart urban mobil ...

BEIJING, Feb. 19, 2024 (GLOBE NEWSWIRE) -- Niu Technologies ("NIU" or "the Company") (NASDAQ:NIU), the world's leading provider of smart urban mobility solutions, today announced that it will report its financial results for the fourth quarter and full year 2023 before the U.S. market opens on Monday, March 18, 2024. The corporate presentation and financial spreadsheets will be posted on NIU's investor relations website at:https://ir.niu.com/financial-information/quarterly-results The Company will host an e ...

BEIJING, Feb. 19, 2024 (GLOBE NEWSWIRE) -- Niu Technologies (“NIU” or “the Company”) (NASDAQ: NIU), the world’s leading provider of smart urban mobility solutions, today announced that it will report its financial results for the fourth quarter and full year 2023 before the U.S. market opens on Monday, March 18, 2024. The corporate presentation and financial spreadsheets will be posted on NIU’s investor relations website at:https://ir.niu.com/financial-information/quarterly-results The Company will host an ...

Niu Technologies (NIU) announced its fourth-quarter and full-year 2023 sales volume results. The China-based electric scooter company sold 137,476 units of e-motorcycles, e-mopeds, e-bicycles, kick-scooters and e-bikes in the quarter, down from 138,279 units sold in the corresponding quarter of 2022.In the fourth quarter of 2023, the electric scooter company sold 110,454 units in the domestic market, down from 118,065 units in the fourth quarter of 2022.The current economic environment in China, along with ...