Goldman Sachs: Maintains "Neutral" rating on XPENG-W (09868) with target price raised to 50 Hong Kong dollars.

Goldman Sachs issued a research report stating that the risk-return of XPENG-W (09868) is currently reasonable, with a "neutral" rating. The bank said that although the strong sales momentum of the group in January this year was partly offset by intense pricing competition in the market, it still raised the group's non-GAAP net profit forecast for 2024 to 2026. The estimated losses for 2024 and 2025 are 5.2 billion and 3.1 billion yuan respectively, while a net profit of 279 million yuan is expected in 2026. The target price has been raised from 49 Hong Kong dollars to 50 Hong Kong dollars. The report stated that with the launch of the latest MONA M03 and P7+ models by XPENG Motors, it is expected that the company's vehicle delivery volume will continue its recent momentum, with an estimated 81% year-on-year growth in vehicle deliveries this year, and the introduction of 4 new models. At the same time, the bank remains cautious about the industry competition environment this year, especially in the first quarter, due to historically large price reductions and uncertain factors related to the government's subsidy for trading in old vehicles for new ones.