Ninebot e2W业务电话会议纪要：重申乐观展望

Household Durables Buy: e2w business conference call takeaways:optimistic outlook reiterated Despite margin pressure from higher raw material costs,management expects a h-o-h improvement in 2H26• Maintain Buy rating and TP of RMB65.00 65.0065.00 HeFeilong,HeadoftheChinaBusinessDivision,spokeonthecall.Belowareourtakeaways:Management reiterated an optimistic outlook for domestic e2W sales volume. Managementmaintained the company's 2026 e2W salesvolume targetat 5.5munits (vs 4.09m in 2025), implying c34.5% y-o-y growth. 1Q26 volume rose 22% y-0-y to 1.2munits, representing c22% of the full-year target. Management highlighted greaterpotential upside than downside to its guidance. We believe the front-loading impactof the 2025 trade-in programme on industry demand will be largely reflected in 1H26Despitesoftersequentialmomentumduringlastyear'speakseason(Jul-Sep2025)and supported by new launches of e-motorbikes and e-bikes underupdated national1.49m units in 3Q25, +55% y-o-y).The company also emphasised efforts to enhanceproductcapabilities across its e2Ws, spanning software/intelligence,electric performance,bodywork,theafter-salessystemandchannelquality.Managementexpectsastepchange incompetitiveness in 2027.Overthe longer term, the company's domestic salestargetfor'Ninebot'e2Ws isc8-1Om unitsperyear.Price bandsforits e-motorbikes ande-bikes are expected to remain above RMB3,000 and RMB2,000, respectively.Withfurther rollout of the'Segway' brand in the high-end market, management believes theindustry's core price band could rise to RMB3,500-4,500 from RMB2,500-3,500 currently Overseasmarketanddual-brandstrategywell ontrack.The company expressedconfidence in its product, brand and channel competitiveness in Vietnam, following marketresearch conducted in March and May 2026 covering competitor products, channelsand demand.With Vietnamas its firstoverseas market,the company plans to enterviaself-developed products featuring high-capacity lithium batteries, given underdevelopedcharging infrastructure and local customers'range requirements.In addition, the'Segwayproduct line will continue to expand, with an off-road e-motorbike to be launched this yearand2-3 new productstobe unveiled atthe Milan ElCMA showlaterthis year.Afull-scalelaunch of'Segway'e2W products in the domestic market is planned for 2027. Li Quan* (Reg. No. S1700520030002)Analyst, A-ShareConsumer SectorHSBC Qianhai Securities Limitedli.quan@hsbcqh.com.cn+86755 88983471 Kathy Song* (Reg. No. S1700517120001)HeadofA-share ConsumerResearchHSBC Qianhai Securities Limitedkathy..h.song@hsbcqh.com.cn+862150662007 Margin pressure alleviation through price hikes and new launches.The company's1Q26grossmarginwasunderpressureduetorawmaterialpricehikes,slower-thanexpectedcostreductionprogress,andproductpromotions(overallgrossmargindown3.1ppt y-o-y to 26.5%). However, the company has slightly raised prices for its e2Wproducts by RMB100 in April and will consider cost hikes in future pricing. The companystill expects 2026 full-year gross margin to decline slightly y-o-y but sees notable h-o-himprovement in 2H26. * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and isnot registered/qualifiedpursuant toFINRA regulations MaintainBuyrating with unchangedTP of RMB65.00.We continue to use a DCFleave our earnings estimates unchanged and derive ourtarget priceof RMB65.00(unchanged), implying c59% upside from the current level; therefore, we maintain our HSBCFundingtheFutureSurvey Sentiment, Al and Private Credit Click to view Disclosures & Disclaimer Issuer of report: HSBC Qianhai Securities Limited This report must be read with the disclosures and the analyst certifications inthe Disclosure appendix, and with the Disclaimer, which forms part of it. ViewHSBCQianhai SecuritiesResearchat:https://www.research.hsbc.com Source: HSBC Qianhai SecuritiesNote: Priced atclose of 14 May 2026 We continue to use a DCF model to value the stock andkeep ourassumptions unchanged (see (unchanged), implying c59% upside from the current level; therefore, we maintain our Buy rating. Announcements of e2w sales volumemilestones.Ninebottargetsmid-to high-end e2W consumers, and we believe it should benefit from the product upgrade driven by stricterproduct standards.The company has been publishing updates on sales volume milestones,andweexpectfurtherannouncementstoboostmarketconfidence Newproduct launches.Ninebothaslaunched newATV and roboticlawnmower (RLM)products in the overseas markets. We expect the company to launch more new nationalstandard luxury e2W products starting May 2026, which should attract more customers andcontribute to revenue growth. Potential inclusion in the Stock Connect. As the first CDR listing in the A-share market,Ninebot has yet to be included in the Stock Connect scheme. However, there have beenmultipleamendmentstotheinclusionstandardsoftheStockConnectsinceitslaunchin2014. We expect more investor interest should the company be included