Goldman Sachs: Maintains "buy" rating on XPENG-W (09868) with a target price of 46 Hong Kong dollars.

Goldman Sachs released a research report stating that they are maintaining a "buy" rating for XPENG-W (09868) with a target price of 46 Hong Kong dollars. Looking ahead, Goldman Sachs believes that investors will focus on Xpeng Motor's MONAM03 and P7+ order and capacity improvement progress, 2025 new vehicle production line and production volume outlook, and potential opportunities to achieve breakeven. The report mentioned that Xpeng Motor's gross profit in the third quarter of this year exceeded market expectations, with a gross profit margin of 15.3%. Goldman Sachs believes that the improvement in gross profit margin is mainly due to the reduction in fixed costs per vehicle due to the higher production scale, as well as further confirmation of revenue from Volkswagen's technical services. However, due to long-term investment losses, Xpeng Motors' third-quarter adjusted net profit was 13% lower than Goldman Sachs' expectations. Xpeng Motor's third-quarter EBIT was also 2% lower than market expectations, with Goldman Sachs attributing this to non-cash losses related to the fair value changes of the group's acquisition of Didi Intelligent Vehicle business.