Summary of Ninebot (A) Conference Call Company Overview - **Company**: Ninebot - **Industry**: Micro-mobility and service robots - **Current Price**: 64.99 CNY - **Price Objective (PO)**: 88.00 CNY, indicating a 35% upside potential [1][28][33] Key Financial Projections - **2025-27 EPS CAGR**: Expected at 27% [1][28][40] - **Net Income (Adjusted)**: Projected to grow from 598 million CNY in 2023 to 3,183 million CNY in 2027 [4][11] - **Sales Growth**: Anticipated to rise from 10,222 million CNY in 2023 to 32,694 million CNY in 2027 [11] - **Gross Margin**: Expected to increase from 28.2% in 2024 to 30.7% in 2027 [21] Market Position and Strategy - **E2W Market Share**: Expected to rise from 15% in 2024 to 23% in 2027 in the high-end E2W segment [2][23] - **Sales Volume**: E2W sales projected to increase from 4.1 million units in 2025 to 6.3 million units in 2027 [2][29] - **Robotic Lawn Mowers**: Anticipated growth of 107% YoY in 2025, 57% in 2026, and 30% in 2027 [3][25] - **Dual-Brand Strategy**: Utilizes both Ninebot and Segway brands to leverage technology and market presence [3][32] Competitive Advantages - **Product Differentiation**: Focus on premium pricing (30-50% higher than competitors) and advanced features such as infotainment and safety systems [2][29] - **Channel Expansion**: Strong sales channels and efficiency improvements [2][29] - **Modularized R&D**: Technology applied across various product categories enhances operational efficiency [3][32] Risks and Challenges - **Market Risks**: Potential slowdown in E2W demand, increased competition, U.S. tariffs, and rising material costs [1][28] - **Regulatory Changes**: Anticipated consolidation in the E2W industry due to new national standards in December 2025 [2][29] Valuation Insights - **Target P/E Ratio**: Set at 24x based on three-year historical average, reflecting a premium over peers [33][43] - **Return on Equity (ROE)**: Expected to stabilize between 29-31% in 2025-27, up from 18.7% in 2024 [33][41] Conclusion - **Investment Recommendation**: Initiate coverage with a Buy rating based on strong growth prospects, market share gains, and robust financial performance [1][28][40]