On June 5, BoCom International issued a report noting that NIO Inc. (09866.HK)'s first-quarter performance underperforming expectations was not unexpected. The market's attention will now shift to the company's incremental improvements, particularly the sustainability of its sales recovery and the impact of cost reduction measures. The report forecasts a modest improvement in NIO's sales and cost management in the second quarter. Despite market uncertainties in the latter half of the year, the bank maintains an optimistic stance. BoCom International underscores the importance for NIO to intensify its cost-cutting efforts to further minimize losses. Based on a 2025 price-to-sales ratio of 0.58x, the bank believes that NIO has limited downside risk and that incremental improvements could trigger short-term rebound opportunities. As such, BoCom International retains a target price of HK$48.96 and a "Buy" rating.