Goldman Sachs: Maintains a "neutral" rating on XPENG-W (09868), raises target price to 57 Hong Kong dollars.

Goldman Sachs released a research report stating that it maintains a "neutral" rating on XPENG-W (09868) with a target price raised from HK$50 to HK$57. Xiaopeng Motors delivered 92,000 new energy passenger vehicles in the last quarter of last year, a 52% year-on-year increase and a 97% increase quarter-on-quarter. The market share of new energy passenger vehicles in mainland China increased from 1.5% in the previous quarter to 2.4%, mainly driven by MONAM03 and P7+. The bank expects Xiaopeng's revenue in the last quarter of last year to reach 16 billion yuan, a 23% year-on-year increase and a 59% increase quarter-on-quarter. The bank believes that the scale of economic expansion can offset the impact of lower pricing of MONAM03; and expects a gross profit of 2.2 billion yuan in the last quarter, a 169% year-on-year increase and a 41% increase quarter-on-quarter. The gross profit margin is expected to reach 13.5%, a 7.3 percentage point increase year-on-year, but a 1.7 percentage point decrease quarter-on-quarter. The bank predicts that Xiaopeng's EBIT loss in the last quarter will be 2 billion yuan, with a non-GAAP net loss estimated at 1.4 billion yuan. The bank lowered its non-GAAP net profit forecast for 2024 and 2025 by 2% to 6% to reflect the increase in Mona sales ratio leading to a lower gross profit margin, but raised its non-GAAP net profit forecast by 2% to reflect the favorable operating leverage.