Daiwa Securities: Upgrades XPENG-W (09868) to "Hold" with a target price of HK$43

Dahua Jixian released a research report, stating that it has upgraded XPENG-W (09868) from "sell" to "hold", and increased the forecasted car delivery volumes for 2024-2026 from 188,000, 230,000, and 280,000 units to 190,000, 350,000, and 400,000 units respectively; net loss forecasts have been reduced by 1%, 36%, and 47% respectively. The target price has been raised from HK$35 to HK$43. The report mentioned that Xiaopeng Motors' car delivery volume in the fourth quarter increased by 52% year-on-year and 97% quarterly, exceeding both the company's guidance and the bank's expectations. Furthermore, the better-than-expected performance in the fourth quarter is expected to drive the company's full-year car delivery volume in 2024 to around 190,000 units (implying a 34% increase year-on-year), slightly higher than the company's and the bank's expectations. Looking ahead, Xiaopeng aims to deliver 350,000 cars this year, significantly higher than Dahua Jixian's forecast of 230,000 units. The bank noted that Xiaopeng's high sales target for this year differs from their expectations, mainly due to the strong sales of its budget model "Mona M03" and the launch of other budget models under the "Mona" sub-brand.