Shares of Niu Technologies (NASDAQ:NIU) were climbing today after the Chinese e-scooter company posted strong sales figures for its third quarter. As a result, the stock was up 10.3% as of 11:51 a.m. EDT on Friday.
Niu Technologies said it sold 250,889 e-scooters in the third quarter, up 67.9% from a year ago; sales in China, where nearly all of its business comes from, were up 70.2%.
The company said that growth in the China market was driven by new products, including the G0, MQi2, and MQiS models. The G0 carries a lower sales price and gross margin than other models and made up 27.6% of sales in the quarter. Year-to-date unit sales are up 43.2%, signaling an acceleration in the third quarter as the Chinese economy emerges from the coronavirus and as Niu expands its product portfolio.
Niu Technologies shares have soared this year, more than tripling as it's ridden the broader rally in electric vehicle (EV) stocks paced by Tesla. Unlike some other EV stocks, Niu is profitable, but revenue is growing more slowly than unit volume due to the introduction of lower-priced products like the G0. This strategy mirrors what Tesla has done with the Model 3, a lower-priced car than its previous products, and seems like a smart way to expand its addressable market.
In Niu's second quarter, revenue grew 21.6% to $96.3 million and the company posted adjusted net income of $10.1 million. For its full third-quarter earnings report, analysts are expecting revenue of $133.7 million and adjusted earnings per share to increase from $0.13 to $0.18, though those estimates could increase after today's report.