CICC released a research report stating that NIO-SW (09866) currently trades at 0.8x P/S for 2025, maintaining Non-GAAP net profit forecasts for 2025-26 and keeping an "outperform" rating. Considering the company's favorable product cycle, CICC raised the target price by 10% to HK$45, corresponding to 1.1x P/S for 2025, representing 29% upside potential from the current stock price.

On July 31, ONVO, a brand under NIO Inc., held a product launch event for the ONVO L90. The L90 offers both 6-seat and 7-seat configurations, with a starting price of RMB 265,800 for outright purchase, or RMB 179,800 with the BaaS (Battery as a Service) rental option.

CICC's main views are as follows:

**L90 Pricing Exceeds Market Expectations with Industry-Leading Comprehensive Product Strength**

From a delivery timeline perspective, the company plans to officially begin deliveries on August 1. By conducting the product launch before the official market launch and referencing pre-order quantities, the company has gained sufficient time for advance production preparation. CICC expects September deliveries to potentially exceed 10,000 units, better capitalizing on the initial wave of word-of-mouth momentum from the new product launch.

Regarding product highlights, CICC believes the L90 demonstrates competitiveness across multiple dimensions including space, energy efficiency, and safety:

1) Large space is a core requirement for three-row SUV users. The L90 achieves space optimization through 36 technical innovations including lightweight design, high integration, and advanced three-electric capabilities.

2) In terms of safety, the L90 adopts a philosophy of "liberating energy and reducing accidents," featuring 45 active and intelligent safety assistance functions as standard, including end-to-end AEB architecture. Based on the company's accumulated expertise in data and algorithms, CICC considers the L90's safety performance industry-leading.

**Expected to Enter New Product Cycle, Anticipating Gradual Reform Benefits Realization**

The company plans to launch the ONVO L80 and the new ES8 in the second half of the year. CICC is optimistic about the company's Q3/Q4 monthly deliveries gradually reaching 30,000-40,000 unit levels. Regarding automotive gross margins, although ONVO's new models are priced more competitively, considering their shared NT3.0 platform with NIO Inc. and cost reduction through technology procurement, along with overall sales volume growth, CICC expects the company to gradually achieve its gross margin guidance of 15%+ for the NIO brand and 10%+ for the ONVO brand. With expense optimization, CICC anticipates the company will achieve its guidance of turning profitable in Q4 2025 and positive free cash flow in Q3-Q4.

**Smooth Progress in Smart Driving, Strong World Model Performance**

The company continues investing in smart driving technology. On May 30, the first version of NIO's world model NWM officially began rollout. The company maintains a safety-first approach, achieving comprehensive upgrades in technical capabilities and user experience across four major scenarios: active safety, highway pilot, urban pilot, and intelligent parking, fully demonstrating the model's characteristics of stable foundation and high ceiling.

Additionally, benefiting from advance planning and pre-installation of intelligent hardware, the company has provided sufficient space for updates and iterations of its intelligent driving assistance technology architecture, enabling owners of different vehicle versions to enjoy the latest technological advances.