Actionable Insights, Assured Alpha, ANTYA Investments

ANTYA Investments

Actionable Insights, Assured Alpha

Investing That Empowers You

ANTYA Investments Inc., regulated by the Ontario Securities Commission, is registered to provide wealth management services in Canada. ANTYA manages institutional, and high net-worth client portfolios on a discretionary basis. Our investment philosophy embraces a Core-Satellite approach.  The core of the portfolio is chosen from a group of fifteen asset classes. A few stock specific asymmetrical investment opportunities comprise the satellite segment. ANTYA invests only in global, large capitalization, and investment grade companies.  

Equity Capital Markets

Niu Technologies / Equity Capital Markets

If <a href="https://www.smartkarma.com/insights/nio-inc-nio-for-the-braveheart-and-tesla-for-the-warrior-in-you" target="_blank">NIO is for the Braveheart and Tesla is for the Warrior in You</a>, then Niu Technologies is for the investor that is looking for growth investing but only wants to put money to work with those that have already delivered. <a href="https://www.smartkarma.com/entities/27469" target="_blank">Niu Technologies (NIU US)</a> is making and delivering e-scooters from its own manufacturing facility. Financials for 2016, 2017 and YTD 2018 are respectable and highlight progress with each passing quarter. We are optimistic given the secular backdrop, China's emphasis on improving its environment and given Niu's stature as a pure-play. Yes, there will be competition, but it appears that for the next few years Niu will deliver volume growth and improving margins.

If NIO is for the Braveheart and Tesla is for the Warrior in You, then Niu Technologies is for the investor that is looking for growth investing but only wants to put money to work with those that have already delivered. Niu Technologies (NIU US) is making and delivering e-scooters from its own manufacturing facility. Financials for 2016, 2017 and YTD 2018 are respectable and highlight progress with each passing quarter. We are optimistic given the secular backdrop, China's emphasis on improving its environment and given Niu's stature as a pure-play. Yes, there will be competition, but it appears that for the next few years Niu will deliver volume growth and improving margins. 

Niu Technologies – Another EV Upstart From China; This One Has Zest

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<a href="https://www.smartkarma.com/entities/27469" target="_blank" data-smartkarma-citation="entities:27469:1">Niu Technologies (NIU US)</a> designs, manufactures and sells premium smart e-scooters that are powered by lithium-ion batteries. NIU is the largest lithium-ion battery-powered e-scooters company in China and ranked third in the European medium-end e-motorcycle market regarding sales volume in 2017. It has filed for a NASDAQ IPO to raise $150 million.While there is are numerous e-scooter brands, many of them are targeted at the low-end Chinese market. NIU is riding the consumption upgrade trend where Chinese consumers, especially middle-class millennials, want higher quality products and are willing to pay for it. Pleasingly, NIU's rapid revenue growth has come with lower losses. Notably, due to strong working capital management, NIU generated positive FCF in 2017 and 1H18.  Overall, we believe that there is more substance than hype to NIU compared to <a href="https://www.smartkarma.com/entities/27399" target="_blank" data-smartkarma-citation="entities:27399:1">NIO Inc (NIO US)</a>:<ol>
<li>NIU’s addressable market in China is more than doubling in size over the next two years due to regulations. China has adopted a new national standard which sets a limit on the total permissible weight of electric bicycles to 55kg starting from April 2019. This new weight limit would render over 95% of the existing lead-acid electric two-wheeled vehicles non-compliant.</li>
<li>NIU has more doubled its market share in China as measured by sales volume from 12.1% in 2016 to 26.0% in 2017. The market share gains were achieved despite an 8.2% increase in the volume-weighted average retail price across most of its models in March 2017. NIU further raised the average retail price in January 2018 by 9.3%. Encouragingly, its sales volume continued to grow at a robust 83% in 1H18. Consequently, NIU seems to have significant pricing power due to its perception as a premium smart e-scooter brand.</li>
<li>NIU is a rare Chinese vehicle manufacturer which has made inroads outside China, particularly in Europe. Europe as a percentage of group revenue has increased from 0.3% in 2016 to 12.4% in 1H18. The EU has several favourable government policies which combined with NIU’s attractive price, will enable NIU to continue its European growth.</li>
<li>NIU is on the cusp of breakeven due to improving gross margin and operational efficiency. NIU’s gross margin has improved from -3.6% in 2016 to 14.3% in 1H18, achieving an all-time high of 15.1% in 2Q18. The improved gross margin along with operational leverage has resulted in NIU approaching EBITDA breakeven. NIU’s adjusted EBITDA margin has improved from -40% in 2016 to -3% in 1H18.</li>
</ol>The key risk is new Chinese regulations coming into force in April 2019. To be compliant with the new regulations, NIU plans to re-engineer the N-Series to satisfy the safety standard of electric motorcycles instead of electric bicycles. As the N-Series will be sold as electric motorcycles in China, users may be required to obtain registration or riding licenses, which may materially adversely affect sales.<div class="content-highlight">After the pop and flop of NIO, investors can be forgiven for casting a wary eye over the latest Chinese EV IPO. Unlike NIO, NIU has an established track record of manufacturing and delivering e-scooters that have gained market share in both China and Europe. Crucially, NIU generates positive FCF which marks a welcome departure from the usual cash burning EV companies. We are bullish on the fundamentals and eagerly await for the IPO price range to make a final recommendation. </div>

Niu Technologies (NIU US) designs, manufactures and sells premium smart e-scooters that are powered by lithium-ion batteries. NIU is the largest lithium-ion battery-powered e-scooters company in China and ranked third in the European medium-end e-motorcycle market regarding sales volume in 2017. It has filed for a NASDAQ IPO to raise $150 million.While there is are numerous e-scooter brands, many of them are targeted at the low-end Chinese market. NIU is riding the consumption upgrade trend where Chinese consumers, especially middle-class millennials, want higher quality products and are willing to pay for it. Pleasingly, NIU's rapid revenue growth has come with lower losses. Notably, due to strong working capital management, NIU generated positive FCF in 2017 and 1H18.  Overall, we believe that there is more substance than hype to NIU compared to NIO Inc (NIO US):
NIU’s addressable market in China is more than doubling in size over the next two years due to regulations. China has adopted a new national standard which sets a limit on the total permissible weight of electric bicycles to 55kg starting from April 2019. This new weight limit would render over 95% of the existing lead-acid electric two-wheeled vehicles non-compliant.
NIU has more doubled its market share in China as measured by sales volume from 12.1% in 2016 to 26.0% in 2017. The market share gains were achieved despite an 8.2% increase in the volume-weighted average retail price across most of its models in March 2017. NIU further raised the average retail price in January 2018 by 9.3%. Encouragingly, its sales volume continued to grow at a robust 83% in 1H18. Consequently, NIU seems to have significant pricing power due to its perception as a premium smart e-scooter brand.
NIU is a rare Chinese vehicle manufacturer which has made inroads outside China, particularly in Europe. Europe as a percentage of group revenue has increased from 0.3% in 2016 to 12.4% in 1H18. The EU has several favourable government policies which combined with NIU’s attractive price, will enable NIU to continue its European growth.
NIU is on the cusp of breakeven due to improving gross margin and operational efficiency. NIU’s gross margin has improved from -3.6% in 2016 to 14.3% in 1H18, achieving an all-time high of 15.1% in 2Q18. The improved gross margin along with operational leverage has resulted in NIU approaching EBITDA breakeven. NIU’s adjusted EBITDA margin has improved from -40% in 2016 to -3% in 1H18.
The key risk is new Chinese regulations coming into force in April 2019. To be compliant with the new regulations, NIU plans to re-engineer the N-Series to satisfy the safety standard of electric motorcycles instead of electric bicycles. As the N-Series will be sold as electric motorcycles in China, users may be required to obtain registration or riding licenses, which may materially adversely affect sales.After the pop and flop of NIO, investors can be forgiven for casting a wary eye over the latest Chinese EV IPO. Unlike NIO, NIU has an established track record of manufacturing and delivering e-scooters that have gained market share in both China and Europe. Crucially, NIU generates positive FCF which marks a welcome departure from the usual cash burning EV companies. We are bullish on the fundamentals and eagerly await for the IPO price range to make a final recommendation. 

NIU IPO Preview: More Substance than Hype Compared to NIO

China

Niu Technologies designs, manufactures, and distributes e-mobility solutions. The Company offers smart electric two-wheeled vehicles. Niu Technologies markets its products worldwide.

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Niu Technologies (NIU US)

Niu Technologies – Another EV Upstart From China; This One Has Zest

If NIO is for the Braveheart and Tesla is for the Warrior in You, then Niu Technologies is for the investor that is looking for growth investing...

ANTYA Investments

NIU IPO Preview: More Substance than Hype Compared to NIO

Niu Technologies (NIU US) designs, manufactures and sells premium smart e-scooters that are powered by lithium-ion batteries. NIU is the largest...

Arun George

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52-week Range

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