Niu's Customers Are Struggling To Afford Li-Ion Inflation

Nov. 22, 2022 8:15 AM ETNiu Technologies (NIU)

Summary

  • Niu Technologies has had a troubled quarter as both idiosyncratic issues with demand from operators in Chinese markets and also global issues in the price and supply of lithium hamper Chinese volumes.
  • International volumes are great, but the company is behind schedule with releases and the Chinese demand sink cannot be relied upon.
  • A structural issue that we see with the company is that competition over resources for Li-ion batteries could render companies down the value chain unprofitable as pricing measures are taken.
  • The slowdown in sharing operator investment in e-scooters and kick scooters are proving to be a problem, and much of the pent-up demand has already been exhausted.
  • Finally, Niu investors should not forget to keep monitoring the de-listing situation, which would affect the liquidity and demand of these shares.
  • Looking for a helping hand in the market? Members of The Value Lab get exclusive ideas and guidance to navigate any climate. Learn More »

Young man on e-scooter in the city

Uwe Krejci

Niu Technologies (NASDAQ:NIU) reported earnings Nov. 21 and the markets did not take kindly to the results. Volumes of the e-scooters and motorbikes that they manufacture were concerning, and investors are probably waking up to the problem with relying on

Niu e-mopeds, e-motorcycles, kick-scooters and e-bike

Niu Products (Q3 2022 Pres)

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