Why Niu Technologies' Stock Has Bottomed and Is Set for a Strong 2026 Rebound

Niu Technologies (NIU), a leading player in the electric mobility sector, has navigated a challenging market landscape in 2025 with resilience. Following the release of its Q3 2025 earnings, the company demonstrated a compelling mix of fundamental strength, margin expansion, and regulatory-driven demand shifts that position it for a robust rebound in 2026. This analysis synthesizes technical and fundamental insights to argue why NIU's stock has reached a critical inflection point.

Fundamental Catalysts: China's Growth Engine and Margin Expansion

Niu Technologies' Q3 2025 earnings underscored a dramatic turnaround in its financial performance. The company reported revenues of RMB 1,693.9 million, a 65.4% year-over-year (YoY) increase, driven by a 74.2% surge in e-scooter sales in China to 451,455 units. This growth was fueled by strategic product portfolio upgrades, a 4,542-store franchised retail network in China, and proactive preparation for the implementation of new national electric bicycle standards.

Equally significant was the gross margin expansion from 13.8% in Q3 2024 to 21.8% in Q3 2025 according to the company's earnings report. This improvement stemmed from cost-reduction initiatives and a favorable shift toward higher-margin products. The company also returned to profitability, reporting a net income of RMB 81.7 million-a stark contrast to the RMB 40.9 million net loss in the same period of 2024 according to Q3 financials. CEO Yan Li highlighted the company's agility in adapting to regulatory changes, including the upcoming national standard for electric bicycles, as a key driver of long-term growth according to management commentary.

While international markets faced headwinds e-scooter sales declined 73.0% YoY to 14,418 units, the China market's dominance-accounting for 97% of total unit sales-offsets these challenges. Analysts note that Niu's focus on domestic demand, coupled with its ability to innovate around regulatory requirements, creates a strong foundation for 2026.

Technical Analysis: Oversold Conditions and Support Levels Signal Rebound Potential

Despite the fundamental optimism, NIU's stock price has faced technical headwinds. Post-Q3 earnings, the stock surged 16.4% according to market analysis, but subsequent technical indicators suggest it has entered an oversold territory. The RSI (Relative Strength Index) stands at 31.477, and the MACD (Moving Average Convergence Divergence) is at -0.249, both signaling potential short-term selling pressure. However, these levels often act as catalysts for rebounds in volatile markets.

Key support levels identified include S1 at $2.940, S2 at $2.830, and S3 at $2.675 according to technical analysis. If the stock holds above these levels, it could trigger a technical rebound. Meanwhile, resistance levels at R1 ($3.205) and R2 ($3.360) represent near-term price targets for a recovery. The ADX (Average Directional Index) of 22.976 indicates weak momentum, but this could reverse as demand aligns with regulatory tailwinds in 2026.

Critically, the stock is currently trading below all major moving averages (5-day, 20-day, 50-day, and 200-day), which historically signals undervaluation. For value investors, this divergence between fundamentals and technicals presents an attractive entry point.

Regulatory-Driven Demand: A Tailwind for 2026

The implementation of China's new national standard for electric bicycles, expected in early 2026, is a pivotal catalyst. Niu Technologies has already optimized its product portfolio and inventory strategy to meet these requirements, positioning itself to capture a larger market share as older, non-compliant models are phased out according to company announcements. This regulatory shift mirrors the 2019 e-bike standard rollout, which spurred a 30% industry-wide sales surge for compliant manufacturers.

Moreover, Niu's international expansion, though currently subdued, retains long-term potential. The company's 57 distributors across 53 countries according to Q3 reports provide a scalable infrastructure for future growth, particularly in markets with emerging e-mobility regulations.

Conclusion: A Confluence of Catalysts for 2026

Niu Technologies' Q3 2025 earnings reveal a company that has stabilized its core operations, expanded margins, and positioned itself to capitalize on regulatory-driven demand. While technical indicators currently suggest oversold conditions, the alignment of strong China sales, margin recovery, and regulatory tailwinds creates a compelling case for a 2026 rebound. Investors who recognize the divergence between short-term technical indicators and long-term fundamentals may find NIU to be an undervalued opportunity in the electric mobility sector.

As CEO Yan Li emphasized, the company's agility in navigating regulatory and market dynamics will be critical in the coming quarters. With Q4 2025 growth expected to stabilize and Q1 2026 poised for reacceleration according to earnings guidance, the stage is set for a meaningful stock price correction.