Founder: Xpeng-W (09868) receives a "strongly recommended" rating, with strong growth potential expected for its new product.

Founder released a research report stating that XPENG-W (09868) is rated as "strongly recommended", with expected revenue of 50.139/73.506/121.651 billion RMB from 2024 to 2026, and net profit attributable to mothers respectively at -8.637/-1.691/2.361 billion RMB, with EPS of -4.55/-0.89/1.24 RMB. In the first half of 2024, the company achieved a historical high in revenue and gross profit margin, reaching 14.6 billion RMB and 13.5% respectively. The MONA M03, launched in August, showed potential for explosive sales at the initial stage. The main points highlighted by the Founder are: The product matrix and technological platform have accumulated strength for profound development, while the organizational management structure is actively seeking change. XPeng Motors has Mona, P, G, and X series, covering the major market segments in the price range of 100,000 to 400,000 RMB. In terms of financial performance, in the first half of 2024, the company achieved a historical high in revenue and gross profit margin, reaching 146.6 billion RMB and 13.5%, with significantly reduced losses of 2.65 billion RMB. Through the establishment of five virtual committees and multiple product matrices, the company has achieved efficient cross-departmental collaboration and product development loop. Subsequently, with the addition of executives such as Wang Fengying to XPeng Motors, the direct sales and distribution systems were merged, channel structure optimized, and the "Jupiter Plan" proposed, leading to further innovative changes in the company's management structure. Following that, a series of technological reserves such as the Fu Yao platform and X-EEA were created. The start of a new product cycle sets sail, and a strong upward trend in new products can be expected. In 2024: the MONA M03 introduced in August 2024, as XPeng's first compact sedan, quickly became a market focus with its high level of intelligence and performance that surpassed competitors in practicality, range, and cabin experience, showing potential for explosive sales at the initial launch. At the same time, the XPeng P7+ is planned to be launched in the fourth quarter of 2024, with a 25% reduction in technical costs expected to bring strong competitive advantages in smart driving and space. In 2025-2026: XPeng's new product cycle is expected to continue, with the introduction of more than four new vehicles expected in 2025 to further expand the product lineup. Long-term development of autonomous driving solutions, with prospects for profound development. XPeng Motors, through self-developed full-stack technology, continues to upgrade its autonomous driving solutions, placing itself among the top intelligent driving companies in China. Recently, XPeng introduced the AI Eagle Eye Vision solution, planning to achieve L3 functionality with L2 hardware, with the full implementation of a purely visual end-to-end solution expected. At the same time, the self-developed Turing chip successfully went into production, providing strong computational power for advanced intelligent driving. Future intelligent hardware costs may significantly decrease, expected to drop to 8,000/7,000 RMB in 2025/2026. The XPeng Technology Day on October 24th is expected to showcase the company's advanced autonomous driving solutions. The domestically leading pure visual + end-to-end solution is expected to be achieved, with technological equality and the price of vehicles equipped with it lowered to within 200,000 RMB. Sales are expected to double, with a clear downward trend in costs. In terms of sales, in the years 2020-2023, XPeng maintained a rhythm of introducing a new car model each year, and is expected to steadily leverage accumulated strengths in 2024-2026, accelerating new releases, with the sales expected to reach 182,000, 309,000, and 529,000 units in 2024-2026. On the cost front, dual drivers of technology cost reduction and business cost reduction, together with ongoing optimization of cooperation with Volkswagen in procurement and technology areas, are expected to continue driving costs down. Additionally, economies of scale are expected to significantly improve aspects such as depreciation and expenses, combined with revenue from cooperation with Volkswagen in pure-electric platforms, electronic architecture, and joint procurement, accelerating the company's profitability inflection point.