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Niu Technologies: Uncertainty Around Long-Term Prospects

Mar. 03, 2021 9:40 AM ETNiu Technologies (NIU)9 Comments
Alex Galanis profile picture
Alex Galanis


  • Niu's revenue has grown at a 36% CAGR over the last three years.
  • Net margin stands at a decent, yet not impressive 10%.
  • Expanding internationally is the biggest challenge for Niu, since almost 90% of sales originate in China.
  • The stock appears to be priced relatively high given historical multiples.


Niu technologies (NASDAQ:NIU) is an e-scooter manufacturer headquartered in China. The company is aggressively growing revenue, while the global demand for electric transportation is increasing. In this analysis, I take a deeper look into Niu's fundamentals and competitive environment, that indicate a promising, yet challenging future. A forward-looking valuation scenario-analysis reveals that the exceptional past stock performance - over the last three years - is unlikely to continue.


Niu Technologies designs, manufactures and sells high-performance electric bicycles, mopeds and motorcycles. NIU has a product portfolio consisting of seven series, four e-moped series, including NQi, MQi and UQi with smart functions and Gova, two urban commuter electric motorcycle series RQi and TQi, and a performance bicycle series, NIU Aero. Different series of products address the needs of different segments of modern urban residents and resolve the demands of different scenarios of urban travel, while being united through a common design language that emphasizes style, freedom and technology. NIU has adopted an omnichannel retail model, integrating the offline and online channels, to sell its products and provide services.

Source: Investor Relations

The global electric scooters market size is expected to reach USD 41.98 billion by 2030, expanding at a CAGR of 7.7% over the forecast period, according to a study conducted by Grand View Research, Inc. Adoption of e-scooter commuting among young populations in urban centers and the rising purchasing power of the middle-class in developing nations are two of the main trends the study underlines. Developing markets like India, Vietnam and the Philippines, known for massive, growing populations, concentrated in large urban centers offer the perfect placement for Niu's products. Europe and North America are also seeing increased demand for electric vehicle transportation, while having populations with stronger purchasing power. The current political environment in the United States and around the world, which seems to encourage the

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This article was written by

Alex Galanis profile picture
Financial Analyst, interested in U.S equities, examining Growth, Dividend Growth and Value Investment opportunities, as well as ETFs.  Accounting and Finance Graduate. CFA level ΙI candidate.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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