China's NIU Technologies reports Q2 revenue up 33.5%, returns to profit
Overview
NIU Q2 revenue rises 33.5% yr/yr to RMB 1,255.7 mln
Net income of RMB 5.9 mln vs net loss last year
Gross margin improves to 20.1% from 17.0% in Q2 2024
Outlook
NIU expects Q3 2025 revenue between RMB 1,433 mln and RMB 1,638 mln
Company anticipates 40% to 60% revenue growth in Q3 2025
NIU cites geopolitical and economic uncertainties affecting international sales
Result Drivers
CHINA SALES - E-scooter sales in China rose 53.6% yr/yr, driving revenue growth despite a 5.3% decrease in revenue per e-scooter
INTERNATIONAL DECLINE - International e-scooter sales fell 35.5% yr/yr, impacted by geopolitical and economic uncertainties
COST REDUCTION - Improved gross margin due to cost-reduction initiatives and product mix changes in China
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | RMB 1.26 bln | ||
Q2 Adjusted Net Income | RMB 13.70 mln | ||
Q2 Net Income | RMB 5.90 mln | ||
Q2 Gross Margin | 20.1% | ||
Q2 Operating Expenses | RMB 264.90 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the auto & truck manufacturers peer group is "buy"
Wall Street's median 12-month price target for NIU Technologies is $3.80, about 0.5% above its August 8 closing price of $3.78
The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 17 three months ago
Press Release: