Citi Reduces XPENG-W (09868.HK) Price Target to $107.8 and Lowers Earnings Projections Due to Valuation of Robotics Business Integration
XPENG-W Humanoid Robots: Citi Research anticipates that XPENG-W will deliver approximately 1,000 humanoid robots in the fourth quarter of 2026, with an average selling price projected at RMB1.23 million and a gross profit margin of 35%.
Target Price Adjustment: The brokerage revised its target prices for XPENG-W's H-shares and US stock down to $107.8 and $27.6, respectively, while maintaining a "Buy" rating, reflecting changes in earnings forecasts and valuation methods.
Revenue and Loss Forecasts: Citi Research has reduced its 2025 revenue forecast for XPENG-W by 5% and increased its net loss forecast by 12% to RMB1.501 billion, indicating challenges in profitability.
Vehicle Profit Margins: The report predicts a decline in vehicle gross profit margin to 11.7% in the fourth quarter of 2025, although a slight profit of approximately RMB22 million is still expected for that quarter.
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<Research>CLSA Lowers XPENG-W's Target Price to HKD77 Due to Increased Costs Postponing Breakeven
XPENG-W's Market Strategy: XPENG-W's "dual-power strategy" is expected to enhance its market penetration in northern China, as noted in a CLSA research report.
Sales Forecast: Despite anticipated weak domestic automotive demand in 2026, CLSA projects XPENG-W's vehicle sales to grow by 10% year-on-year, reaching 471,000 units.
Challenges to Profitability: The company's path to breakeven may be hindered by increasing raw material costs and higher R&D expenses related to AI in 2026.
Target Price Adjustment: CLSA has reduced XPENG-W's target price from HKD106 to HKD77 while maintaining an Outperform rating amidst sales pressures.
Xpeng Aeroht Partners with Shenzhen East General Aviation for Low-Altitude Economic Development
Strategic Cooperation: Guangdong Huitian Aerospace Technology (Xpeng Aeroht) has formed a strategic partnership with Shenzhen East General Aviation to develop a low-altitude economy demonstration project.
Project Goals: The initiative aims to create a model that includes scenario display, sales cooperation, and ecosystem co-construction, focusing on flight experiences, low-altitude tours, and cultural tourism to enhance China's low-altitude economy.
<Study> G Sachs Ratings/Price Targets for Chinese Auto Manufacturers and Suppliers (Table)
Stock Ratings Overview: Various companies in the automotive sector, including BYD, Li Auto, XPeng, and Fuyao Glass, received "Buy" ratings with adjusted target prices reflecting recent market performance.
Short Selling Activity: Significant short selling activity was noted for several companies, with Li Auto and Minth Group showing high short selling ratios of 34.55% and 21.42%, respectively.
Neutral and Sell Ratings: NIO, Tuopu Group, and Huayu Automotive received "Neutral" or "Sell" ratings, indicating a cautious outlook on their stock performance.
Market Pressures: CLSA reported that rising costs are further compressing automaker profits, with companies like BYD and Leapmotor positioned better to absorb these pressures.
XPENG-W Introduces Start-Stop Payment Functionality on 'XPENG APP' in Hong Kong
New Payment Feature Launch: XPENG has introduced a start-stop payment feature on its “XPENG APP” in Hong Kong, allowing car owners to scan QR codes at over 1,600 EV charging stations and pay via Alipay HK, with additional payment methods to be added soon.
Global Cooperation with Antom: XPENG has formed a global partnership with Antom, making it the first Chinese automaker to establish a global payment collaboration, aimed at enhancing payment flexibility for charging services.
Expansion Plans: The new payment service will expand to other markets in Southeast Asia, including Singapore, Thailand, Malaysia, and Indonesia, integrating with local payment tools.
Partnerships for Charging Infrastructure: XPENG has partnered with Cornerstone Technologies and EV Power, which manage a significant portion of public charging piles in Hong Kong, to support the new payment feature.
JPM Cuts LI AUTO-W Rating to Underweight; Recommends GEELY AUTO and SINOTRUK as Top Choices
Market Outlook: JP Morgan predicts the Chinese automobile market will experience a mixed performance in 2023, with potential negative growth similar to 2018, but also volatility driven by new model releases and seasonal trends akin to 2025.
Top Picks: The broker's top stock picks include GEELY AUTO and SINOTRUK, while they see potential in BYD COMPANY, LEAPMOTOR, XPENG-W, and NIO for future positioning.
Investment Ratings: JP Morgan has assigned various investment ratings and target prices for several automobile stocks, with BYD COMPANY and SINOTRUK rated as "Overweight," while LI AUTO-W has been downgraded to "Underweight."
Short Selling Data: The report includes short selling data for the stocks mentioned, indicating varying levels of market sentiment and potential risks associated with each stock.
Citi Sets Target Price for LI AUTO-W (02015.HK) While Maintaining Neutral Rating
Company Expansion: LI AUTO-W is expanding into the robotics sector, focusing on 'embodied intelligence' and planning to develop humanoid robots and AI-driven hardware, according to a Citi Research report.
Valuation Methodology Update: Citi Research has updated its valuation methodology for LI AUTO-W, shifting from a pure PS ratio to a SOTP approach, resulting in increased target prices for its US stock and H-shares.
Market Performance Analysis: The report indicates that high-priced EV models show resilience to rising raw material costs, which may explain the recent outperformance of SERES compared to XPENG-W and BYD ELECTRONIC.
Broker Rating: Citi Research maintains a Neutral rating for LI AUTO-W amidst these developments.
<Research>CLSA Lowers XPENG-W's Target Price to HKD77 Due to Increased Costs Postponing Breakeven
XPENG-W's Market Strategy: XPENG-W's "dual-power strategy" is expected to enhance its market penetration in northern China, as noted in a CLSA research report.
Sales Forecast: Despite anticipated weak domestic automotive demand in 2026, CLSA projects XPENG-W's vehicle sales to grow by 10% year-on-year, reaching 471,000 units.
Challenges to Profitability: The company's path to breakeven may be hindered by increasing raw material costs and higher R&D expenses related to AI in 2026.
Target Price Adjustment: CLSA has reduced XPENG-W's target price from HKD106 to HKD77 while maintaining an Outperform rating amidst sales pressures.
Xpeng Aeroht Partners with Shenzhen East General Aviation for Low-Altitude Economic Development
Strategic Cooperation: Guangdong Huitian Aerospace Technology (Xpeng Aeroht) has formed a strategic partnership with Shenzhen East General Aviation to develop a low-altitude economy demonstration project.
Project Goals: The initiative aims to create a model that includes scenario display, sales cooperation, and ecosystem co-construction, focusing on flight experiences, low-altitude tours, and cultural tourism to enhance China's low-altitude economy.
<Study> G Sachs Ratings/Price Targets for Chinese Auto Manufacturers and Suppliers (Table)
Stock Ratings Overview: Various companies in the automotive sector, including BYD, Li Auto, XPeng, and Fuyao Glass, received "Buy" ratings with adjusted target prices reflecting recent market performance.
Short Selling Activity: Significant short selling activity was noted for several companies, with Li Auto and Minth Group showing high short selling ratios of 34.55% and 21.42%, respectively.
Neutral and Sell Ratings: NIO, Tuopu Group, and Huayu Automotive received "Neutral" or "Sell" ratings, indicating a cautious outlook on their stock performance.
Market Pressures: CLSA reported that rising costs are further compressing automaker profits, with companies like BYD and Leapmotor positioned better to absorb these pressures.
XPENG-W Introduces Start-Stop Payment Functionality on 'XPENG APP' in Hong Kong
New Payment Feature Launch: XPENG has introduced a start-stop payment feature on its “XPENG APP” in Hong Kong, allowing car owners to scan QR codes at over 1,600 EV charging stations and pay via Alipay HK, with additional payment methods to be added soon.
Global Cooperation with Antom: XPENG has formed a global partnership with Antom, making it the first Chinese automaker to establish a global payment collaboration, aimed at enhancing payment flexibility for charging services.
Expansion Plans: The new payment service will expand to other markets in Southeast Asia, including Singapore, Thailand, Malaysia, and Indonesia, integrating with local payment tools.
Partnerships for Charging Infrastructure: XPENG has partnered with Cornerstone Technologies and EV Power, which manage a significant portion of public charging piles in Hong Kong, to support the new payment feature.
JPM Cuts LI AUTO-W Rating to Underweight; Recommends GEELY AUTO and SINOTRUK as Top Choices
Market Outlook: JP Morgan predicts the Chinese automobile market will experience a mixed performance in 2023, with potential negative growth similar to 2018, but also volatility driven by new model releases and seasonal trends akin to 2025.
Top Picks: The broker's top stock picks include GEELY AUTO and SINOTRUK, while they see potential in BYD COMPANY, LEAPMOTOR, XPENG-W, and NIO for future positioning.
Investment Ratings: JP Morgan has assigned various investment ratings and target prices for several automobile stocks, with BYD COMPANY and SINOTRUK rated as "Overweight," while LI AUTO-W has been downgraded to "Underweight."
Short Selling Data: The report includes short selling data for the stocks mentioned, indicating varying levels of market sentiment and potential risks associated with each stock.
Citi Sets Target Price for LI AUTO-W (02015.HK) While Maintaining Neutral Rating
Company Expansion: LI AUTO-W is expanding into the robotics sector, focusing on 'embodied intelligence' and planning to develop humanoid robots and AI-driven hardware, according to a Citi Research report.
Valuation Methodology Update: Citi Research has updated its valuation methodology for LI AUTO-W, shifting from a pure PS ratio to a SOTP approach, resulting in increased target prices for its US stock and H-shares.
Market Performance Analysis: The report indicates that high-priced EV models show resilience to rising raw material costs, which may explain the recent outperformance of SERES compared to XPENG-W and BYD ELECTRONIC.
Broker Rating: Citi Research maintains a Neutral rating for LI AUTO-W amidst these developments.
