Ninebot Ltd (689009 CH): Buy: New five-year plan outlining long-term growth prospects

Research evidence excerpt

Ninebot Ltd (689009 CH): Buy: New five-year plan outlining long-term growth prospects

Dividend yield (%) 4.4 3.4 4.7 5.7

EV/EBITDA (x) 9.2 7.7 4.6 3.4

for its business growth over the past few years, so we think its new five-year plan will ROE (%) 26.4 24.6 29.6 29.9

also guide its rapid earnings growth. Ninebot’s stock is trading at c15x 2026e PE. The

market is still waiting for an inflection point of e2W sales in China. We expect revenue 52-WEEK PRICE (CNY)

growth and profitability to improve q-o-q and market confidence to recover in 3Q26.

79.00

Estimate changes. Ninebot reiterated its 2026 sales guidance of 5.5m e2Ws, with

slower new vehicle launches and shipments in 2Q26, but we do not adjust our 53.00

revenue estimate as we expect new vehicle sales revenue to be booked mainly in 27.00

3Q26. Sales volume was boosted by discounts in 2Q26, and we expect pressure on 06/25 12/25 06/26

earnings per vehicle to remain on a y-o-y basis amid raw material price hikes in 2Q26. Target price: 63.00 High: 73.17 Low: 33.01 Current: 37.84

The company plans to raise the price per vehicle by cRMB100 from 3Q26. If price Source: LSEG IBES, HSBC Qianhai Securities estimates

hikes are successful, with the delivery of luxury models under the new national

standards, we expect a significant improvement in earnings per vehicle in 3Q26. Li Quan* (Reg. No. S1700520030002)

Finally, we remain cautious on the company's earnings this year given the foreign Analyst, A-Share Consumer Sector

exchange pressure in 2Q26 (EUR/RMB rate has dropped c2% since 2Q26). Overall, HSBC Qianhai Securities Limited

we lower our net profit estimates by c8% in 2026, c2% in 2027, and c2% in 2028. li.quan@hsbcqh.com.cn

+86 755 8898 3471

Business restructuring.