On a day when the S&P 500 and Dow Jones Industrial Average have pumped the brakes, investors are hitting the gas pedal and driving shares of Niu Technologies (NASDAQ:NIU) higher today. As of 10:53 a.m. EDT, shares have risen 8.7%, retreating from the 12.8% spike they experienced earlier.
In addition to a strong second-quarter earnings report, investors are hitching a ride with Niu today in response to management’s promising third-quarter guidance.
During the second quarter, Niu Technologies booked revenue of 944.7 million renminbi (nearly $146 million), representing a 46.5% year-over-year increase. While the company reported a decrease in revenue per e-scooter — about 7.3% compared to Q2 2020 — the higher sales volumes more than compensated. Growing e-scooter sales in both the Chinese and international markets, the company reported overall sales of 252,988 e-scooters which was 58% higher than that which it reported during the same period last year.
The bottom line of the income statement provided investors with more reasons to celebrate. Niu Technologies reported net income of 91.8 million renminbi in Q2 2021 — a 61.6% year-over-year increase — thanks to a wider margin. In the recently completed quarter, Niu Technologies reported a net income margin of 9.7% compared to 8.8% in Q2 2020.
While the company didn’t provide earnings guidance for the third quarter, investors seem to be content with the revenue forecast. Niu Technologies expects to book sales of 1.25 million renminbi ($193,000) to 1.45 million renminbi ($224,000), which translates to a year-over-year increase of 40% to 62%.
Demonstrating that customers’ appetites for electric mobility transcends vehicles and applies to e-scooters as well, Niu Technologies continues to report strong sales growth in both China and abroad. Apparently, the company is not letting up on the gas — something that should appeal to investors who recognize Niu as a great growth stock. The company has begun pre-sales of the KQi3 e-scooter in Europe and the U.S., and it expects deliveries to begin in the fourth quarter.
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