EBSCN·2025-09-08 11:20Investment Rating - The report upgrades the investment rating to "Buy" based on the strong performance and order expectations of the new models, as well as the gradual realization of cost reduction and efficiency improvements [3]. Core Views - The report highlights that NIO's total revenue in Q2 2025 increased by 9.0% year-on-year and 57.9% quarter-on-quarter to 19.01 billion RMB, with a gross margin of 10.0% [1]. - The report anticipates a gradual improvement in fundamentals driven by delivery growth in the second half of 2025, with a projected delivery target of 87,000 to 91,000 vehicles in Q3 2025 [2]. - The report expects NIO to achieve a Non-GAAP net loss of approximately 13 billion RMB in 2025, a significant improvement from previous estimates [3]. Summary by Sections Financial Performance - In Q2 2025, NIO's delivery volume increased by 25.6% year-on-year and 71.2% quarter-on-quarter to 72,000 vehicles, with automotive revenue reaching 16.14 billion RMB [1]. - The Non-GAAP net loss narrowed by 9.0% year-on-year and 34.3% quarter-on-quarter to 4.12 billion RMB [1]. - The report projects total revenue for 2025 to be 90.18 billion RMB, with a growth rate of 37.2% [4]. Product Strategy - NIO's multi-brand strategy is expected to yield results, with new models like the L90 and the revamped ES8 set to launch in October and December 2025, respectively [2]. - The report notes that the new models have received strong order volumes, indicating a positive market reception [2]. Cost Management - The report indicates a decrease in Non-GAAP R&D expense ratio by 3.5 percentage points year-on-year to 13.1% in Q2 2025, and a decrease in Non-GAAP SG&A expense ratio by 1.2 percentage points to 19.4% [1]. - Continuous technological innovation and in-house chip development are expected to lower per-vehicle costs and improve gross margins [2].