Niu (NASDAQ:NIU) runs a business model, which is growing at the double-digit, and has access to a large amount of information from phone apps. If the company knows how to assess its data, and continues to invest in technology
Niu's Big Data Assessment Offers More Than 43% Upside
Summary
- NIU commenced operations in September 2014 and sold the first NQi-series smart e-scooters in 2015. The company’s brands intend to be a symbol of style, freedom, and technology.
- The management does not only use the data to offer better products and services along with smart maintenance. NIU makes the best use of behavioral data to strengthen brand loyalty.
- I expect sales growth of 20%-16% from 2024 to 2030, a CFO/Sales close to 12.5%, and a free cash flow margin of 8.35%-10.48%.
- NIU will be able to increase its marketing efforts and R&D in artificial intelligence. In my view, a significant amount of cash is one of the best indicators of future sales growth.
- The management will not decrease its marketing efforts because in my view, it is the only way NIU’s omnichannel retail model could work.
I am an financial advisor living in Europe. I conduct due diligence for clients across multiple sectors. I hold more than 15 years of expertise.I only write about my opinion. Investing in securities involves risk of loss that readers should be prepared to bear. No investment process is free of risk; no strategy or risk management technique can guarantee returns or eliminate risk in any market environment.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of NIU either through stock ownership, options, or other derivatives. 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.