CICC: Maintains XPENG-W (09868) "outperform industry" rating with a target price of 70 Hong Kong dollars.

CICC released a research report stating that market expectations for new energy vehicle companies turning profitable are gradually increasing. The bank believes that XPENG-W (09868) is set to have a strong product cycle in 2025 and is expected to achieve profitability in a single quarter this year. The bank has introduced a profit forecast of 2.4 billion CNY for 2026, maintaining a target price of 70 HKD for the Hong Kong stock and a "outperform" rating within the industry. The bank stated that Xiaopeng Motors has made breakthroughs in intelligent driving and has seen high year-on-year growth in user mileage. The bank believes that the company maintains industry-leading product experiences, which is expected to drive up valuation. Additionally, the expected turnaround for the MONA M03 and P7+ models released last year is based on organizational restructuring and improved capabilities in all aspects due to collaboration with Volkswagen. The bank believes that with the launch of multiple new models, combining with the product momentum, Xiaopeng Motors is set to achieve record sales in the second quarter of this year. The bank estimates that G7 may replicate the success of the G6 model and become a hit.