U.S. shares of Azera Motors (NIO.US) +0.610 (+14.387%) Pre -1.031% surged 14.4% to close at $4.85 after the company announced its results. Citi Research issued a report placing a $53.80M short sell on NIO-SW (09866.HK) 0.000 (0.000%); with a 43.708% rating and a Buy price target for the next 30 days on its Upside Catalyst Watch List. (09866HK) 0.000 (0.000%) Sell Short $53.80M; 43.708% on its Upside Catalyst Watch List for the next 30 days, rated Buy, with a target price of HK$53.7 in a report by Citibank Research.
Citi expects Azalea to report Other Income of CNY1.86B in 3Q24, with negative gross
margin
narrowing to -9.5% (-12.3% in 2Q24). The broker expects the company’s consolidated average selling price (ASP) to rise 1-2% YoY in 3Q24, and automotive gross margin to improve to 13.3-13.7%, with an improved product mix, higher ASP, and better economies of scale implying an increase of 1.8 percentage points in consolidated gross margin to ~11.5%.
Citi forecasts Azera’s 4Q24 vol.
continue to improve to 83,000 to 85,000 units, up 32% to 39% YoY. The broker also does not expect any further refinancing plans from the automaker in the near term, as it expects working capital to continue to improve in Q3 and Q4, in line with YoY revenue growth.
The broker further predicts that Azera will set a sales target of 400,000-450,000 units by the end of FY25.
(Hong Kong stock quotes are delayed by at least 15 minutes. Short selling data as of 2024-09-05 16:25. (Real-time streaming of US stock quotes; all OTC quotes are delayed by at least 15 minutes.