Nio surges 14% in HK early trading as Q2 earnings beat

Nio surged in early hours of Hong Kong trading today, as trading resumed in the city's stock market after being suspended due to a typhoon on Friday. Nio (NYSE: NIO) surged in early Hong Kong trading today after beating second-quarter earnings estimates, as trading on the Hong Kong stock market resumed today after being suspended on Friday due to a typhoon. At press time, Nio was up 13.93 percent to HK$38.85, its biggest intraday gain since May 2. The rise followed Nio's performance in the US market, where the electric vehicle (EV) maker's American Depository Shares rose 14.39 percent last Thursday and a further 3.51 percent on Friday. Nio reported stronger-than-expected second-quarter results and gave strong guidance for third-quarter deliveries before the US stock market opened last Thursday. Hong Kong's stock market was closed all day on Friday due to Typhoon Yagi. Nio's second-quarter revenue came in at RMB 17.446 billion ($2.4 billion), better than analysts' expectations of RMB 17.385 billion. That was up 98.89 percent year-on-year and up 76.07 percent from the first quarter, and also beat the upper end of the guidance range of RMB 16.59 billion to RMB 17.14 billion. The company reported a net loss of RMB 5.05 billion in the second quarter, down 16.7 percent year-on-year and down 2.7 percent from the first quarter. It posted a gross margin of 9.7 percent in the second quarter, above analysts' expectations of 8.736 percent and the highest since the third quarter of 2022. The figure was 1.0 percent in the second quarter of 2023 and 4.9 percent in the first quarter of 2024. Nio guided for third-quarter vehicle deliveries to be between a record 61,000 and 63,000 units, representing year-on-year growth of about 10 percent to 13.7 percent. The guidance implies that it expects September deliveries to be between 20,326 and 22,326 vehicles, considering that it delivered 20,498, and 20,176 vehicles in the past two months, respectively. The sub-brand Onvo will officially launch its first model, the L60 SUV (sport utility vehicle), on September 19 and expects to deliver 20,000 units of the model during the year, Nio's management said on an earnings call. Nio is targeting 10,000 deliveries of the Onvo L60 in December and wants the model to reach 20,000 deliveries in a single month sometime in 2025, according to its management. Deutsche Bank expects Nio to launch 6 new products and achieve 330,000 unit sales in 2025