Niu Technologies Stock Still Up 70% YTD, Despite Tariff Gloom

Core Insights - Niu Technologies experienced a significant increase in its China unit sales, rising 66% in the first quarter, while global sales growth was limited to 6% due to tariff challenges in the U.S. market [2][9] - The company is focusing on the premium segment of the Chinese market, which constitutes over 85% of its sales, while also expanding its international sales network through partnerships with major retailers [5][6] - Despite returning to revenue growth with a 24% increase to 3.29 billion yuan ($451 million) last year, the company is still facing losses, although the loss narrowed in the fourth quarter [6][7] China Market Performance - Niu's China scooter sales reached 183,065 units in the first quarter, marking a 66% year-on-year increase, continuing a trend of strong growth from the previous quarter [12][13] - The growth is attributed to a government program that incentivizes consumer spending through subsidies for trade-ins, which has expanded to include e-scooters [13][14] - The company forecasts a sales volume increase of 40% to 70% for the year, projecting total sales between 1.3 million and 1.7 million units [15] International Market Challenges - International unit sales grew only 6% year-on-year to 20,248 units in the first quarter, a significant slowdown compared to previous quarters [16] - The slowdown is attributed to a new 25% tariff imposed by the U.S. on Chinese imports, prompting the company to establish a manufacturing facility in Southeast Asia [17][18] - Despite the challenges, Niu's stock has increased by 70% this year, reflecting investor confidence in its strong domestic prospects [19]