Chinese electric scooter maker Niu Technologies' Q4 revenue up 25 percent year-on-year to $103 million

Chinese electric scooter maker Niu Technologies' fourth-quarter revenue rose 25 percent year-on-year to RMB 672 million($103.22 million), while net income fell 4.3 percent year-on-year to RMB 58.2 million, according to the company's earnings report released Tuesday.

The company sold 150,465 electric scooters in the fourth quarter, up 41.6 percent from a year earlier, partially offsetting an 11.5 percent decline in the average sales price of electric scooters from a year earlier.

It sold 137,586 electric scooters in China, up 35.0% year-on-year, and it sold 12,879 electric scooters overseas, up 197.1% year-on-year.

As of December 31, 2020, Niu Technologies expanded its China sales network to 1,616 stores in the fourth quarter, an increase of 350 stores from the previous month.

Niu Technologies' 2020 net revenue was RMB 2,244.3 million yuan, an increase of 17.7% from the prior-year quarter, driven by a 42.8% year-on-year increase in electric scooter sales.

Niu Technologies' gross profit for the fourth quarter of 2020 was RMB 169.0 million yuan, with a fourth-quarter gross margin of 25.2%, down from 26.1% in the prior-year period.

Non-GAAP attributable net income for the fourth quarter of 2020 was RMB 68.6 million yuan, compared to RMB 68.5 million yuan for the same period in the prior year. Non-GAAP attributable net margin was 10.2%, compared to an adjusted net margin of 12.8% for the same period in the prior year.

Non-GAAP attributable net income for 2020 was RMB 208.3 million yuan, compared to net income of RMB 209.7 million yuan for the same period in the prior year. Non-GAAP attributable net margin was 8.5%, compared to an adjusted net margin of 10.1% for the same period in the prior year.

As of Dec. 31, 2020, Niu Technologies held cash, time deposits, and short-term investments totaling RMB 1,103.1 million yuan.

The company expects revenue for the first quarter to be RMB 420 million - 478 million, up 80% - 105% year-on-year.

CICC analysts believe that the company's guidance for the first quarter is conservative and below market expectations.

The company will sell about 130,000 units in the first quarter, with price per unit falling back to around RMB 3,500 yuan, CICC expects.

CICC maintains its "Outperform" rating for the company, but is more conservative on its 2021 sales per unit forecast, lowering its 2021 net profit estimate by 13.0% to RMB 475 million yuan.

CICC lowered its price target on Niu Technologies by 13.0% to $40, representing an upside of 19.2% from the current share price.