How will Nio shares fare for the rest of 2022?

• NIO Limited (NYSE: NIO) share price hit a high of US$21.12 on Thursday (9 June 2022)
• Its Singapore Exchange listing (SGX: NIO) closed at US$20.33 earlier
• The Chinese electric vehicle maker's Q1 2022 earnings exceeded estimates
• Keen to trade Nio shares? Open an account with us to start today.

Nio stock price: what’s the latest?

Nio’s US shares rallied as much as 4% on Thursday morning, following the release of its Q1 2022 financial results.

The Chinese electric vehicle maker’s secondary Singapore listing, meanwhile, closed slightly lower earlier at US$20.33 (approximately S$28) a share. The newly launched counter saw 270,000 shares exchange hands during the session.

The shares, which are fully fungible with its American Depository shares (ADS), have grown by 17.5% since debuting on the Singapore Exchange (SGX) on 22 May 2022.

In terms of outlook, the Straits Times Index constituent has an average rating skewed towards ‘outperform’ and average target price of US$39.69, according to the latest SGX StockFacts data.

The target price equates to a 95% upside potential from Nio’s last traded price.

Nio beats Q1 2022 revenue and earnings estimates

The company, also known as Weilai (蔚來) in Chinese (which means ‘Blue Sky Coming’), saw total revenue for the first quarter of 2022 increase by 24.2% from the same period last year to 9.91 billion yuan (US$1.56 billion). It also surpassed analyst estimates of 9.86 billion yuan (US$1.48 billion) slightly.

Vehicle sales for the quarter came in at 9.2 billion yuan (US$1.46 billion), representing a year-on-year (YoY) increase of 24.8%.

Net loss attributable to NIO’s ordinary shareholders, however, fell 62.6% YoY to 1.83 billion yuan (US$287.9 million) in the first quarter of 2022.

Basic and diluted net loss per Ordinary Share/ADS, or earnings per share (EPS), were both 1.12 yuan (US$0.18) in the first quarter of 2022, compared with 3.14 yuan (US$0.47) in the first quarter of 2021.

Adjusted basic and diluted net loss per ADS (non-GAAP EPS) both came in 25.6% higher than analyst expectations at 0.79 yuan (US$0.13), but fell from 0.23 yuan (US$0.034) a year ago.

Nio also set new record-high quarterly deliveries of 25,768 vehicles in the first quarter of 2022, with cumulative deliveries reaching 204,936 vehicles as of 31 May 2022.

This meant the company has hit the milestone of exceeding 200,000 vehicle deliveries within four years since our first delivery, said William Bin Li, founder, chairman and chief executive officer of NIO.

‘Despite the volatilities of supply chain and the challenges in vehicle delivery resulting from the recent COVID-19 resurgence, we witnessed robust demand for our complementary products and achieved an all-time high order inflow in May 2022,’ he added.

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