In the recent market activity for Chinese stocks, Niu Technologies (NIU, Financial) experienced significant volatility. From mid-September to early October, NIU's stock price surged from $1.8 to a peak of $3.5, marking a 94.44% increase. However, this rally was short-lived as the stock plummeted back down, reaching a low of $1.73 by late November, erasing all previous gains.
On November 18, NIU released its Q3 2024 financial report, showing a 10.5% year-over-year increase in revenue and a 50.3% rise in overseas electric scooter sales. Despite these positive figures, the market reacted negatively, with the stock dropping 7.58% the following day. This decline has contributed to the stock nearing its historical lows.
Although NIU's stock showed a slight rebound on November 22, closing up 2.78%, it remains under pressure. The stock opened lower that day, touching a recent low of $1.73 before recovering to close at $1.85. Despite this, the overall trend indicates a potential continuation toward previous lows.
Market data reveals that NIU has experienced net capital outflows for four consecutive trading days, reflecting investor caution. Since reaching a high on October 7, the stock has seen significant selling pressure, with trading volumes decreasing sharply as prices approached the average cost line.
NIU's Q3 financials reveal a mixed picture. Revenue increased to RMB 1.024 billion, but the gross margin fell to 13.8% from 21.4% a year earlier. The net loss narrowed to RMB 40.9 million from RMB 79.4 million. Electric scooter sales rose 17.5% year-over-year, driven by a 50.3% increase in international markets.
Looking ahead, NIU forecasts Q4 revenue growth of 30% to 50%, reflecting strong international demand, particularly in North America, Europe, and Southeast Asia. This outlook aligns with market research predicting a significant expansion in the global electric two-wheeler market by 2030.
