Friday, July 11th, 2025

XPeng (9868 HK): Sustained Losses Amid Growth Challenges

XPeng (9868 HK): Sustained Losses Amid Growth Challenges

Recommendation: SELL

  • Target Price: HK$18.00
  • Date of Recommendation: September 9, 2024
  • Broker Company: UOB Kay Hian

Investment Thesis:

XPeng faces ongoing financial challenges, with sustained losses and cash outflows continuing to plague the company. Despite recent sales growth driven by its sub-brand Mona, XPeng’s profitability remains a concern, leading to the sell recommendation.

Key reasons for the negative outlook include:

  • Sales Growth Offset by Losses: XPeng saw a 13% yoy increase in insurance registrations in the 35th week of 2024, reaching 3,500 units. However, despite the positive sales trend, XPeng is expected to report a net loss of RMB7.80 billion for 2024, with continued losses projected through 2026.
  • Mona’s Contribution: The introduction of the Mona sub-brand has boosted sales, but it is insufficient to reverse the company’s overall financial trajectory. XPeng’s net losses for 2024-2026 are forecasted at RMB7.80 billion, RMB6.13 billion, and RMB5.22 billion, respectively.

Financial Performance:

  • Wholesale Shipments: XPeng’s wholesale shipments grew by 3% yoy to 14,036 units in August 2024, bringing the YTD total to 77,209 units.

Valuation and Catalysts:

The target price of HK$18.00 reflects XPeng’s ongoing financial difficulties and the uncertain outlook for profitability. Despite recent sales growth, the company’s cash burn and losses justify the sell recommendation.

Thank you

BAT Malaysia 2024 Results: Mixed Outlook Amid New Nicotine Regulations

British American Tobacco Bhd Analysis – Comprehensive Financial Insights British American Tobacco Bhd: Comprehensive Financial Insights Broker: UOB Kay Hian Date: Friday, 07 February 2025 Overview of British American Tobacco Bhd British American Tobacco...

DBS Group Holdings Ltd Poised for Breakout: Technical Analysis and Market Outlook – Singapore Retail Research July 2025

Broker: CGS International Date of Report: July 8, 2025 DBS Group Holdings and China Resources Beer: Technical Breakouts and Margin Expansion Highlight Regional Investment Opportunities Market Overview: Trade Tensions Ease as EU and US...

Singapore Market Outlook: FSSTI Rises 0.4%, DBS Leads Institutional Buying

Comprehensive Analysis of FSSTI Index and Featured Companies Comprehensive Analysis of FSSTI Index and Featured Companies Broker Name: Lim & Tan Securities Date of Report: 12 November 2024 Financial Markets Overview U.S. stocks ended...