Nio and Xiaopeng Expected to Increase Sales in Second Half... Stock Prices to Rise

Lower Average Sales Share in the First Half
Up to 1.9 Times More Sales in the Second Half

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Minji Lee] Chinese electric vehicle companies such as Nio and Xiaopeng are expected to see their stock prices follow an upward curve as they record record sales in the second half of the year.

According to the New York Stock Exchange on the 4th, the stock price of Chinese electric vehicle company Nio fell 5% this month to $50.4. Haneul Jung, a researcher at Samsung Securities, said, "Nio's annual sales consensus is around 90,000 to 100,000 units, but the first half sales were only 42,000 units, raising concerns that the annual sales consensus may not be met, which caused the decline. However, considering that sales are increasing, the annual sales are expected to exceed market expectations."

Nio's sales in June reached 8,083 units, up 20.4% from the previous month and 116.2% year-on-year, marking the highest monthly sales. Second-quarter sales were 21,896 units, in line with the previous forecast (21,000 to 22,000 units). Second-quarter sales increased by 12.8% compared to the previous quarter. First-half sales reached 99.7% of last year's annual sales. Xiaopeng also recorded its highest monthly sales. Sales reached 6,565 units, up 15.5% from the previous month and 484.6% year-on-year. Second-quarter sales were 17,398 units, exceeding the guidance of 16,000 units. The semiconductor shortage for electric vehicles appears to have ceased affecting sales after May.

Considering the low sales proportion in the first half, second-half sales are expected to be larger. The average proportion of cumulative first-half sales to annual sales for Nio in 2019 and this year is about 34%. Xiaopeng's average cumulative first-half sales proportion during the same period is only 38%. Looking at the entire Chinese electric vehicle market, the average first-half sales proportion over five years from 2016 to 2020 is about 35.9%.

Researcher Haneul Jung explained, "The average first-half sales proportions for both Nio and Xiaopeng are below 40%. Since second-half sales are 1.7 to 1.9 times that of the first half, second-half sales will shine more than the first half."

This content was produced with the assistance of AI translation services.