Goldman Sachs: Maintaining Xiaopeng Motor-W (09868)'s “neutral” rating and upgrading the target price to HK$57

The Zhitong Finance App learned that Goldman Sachs released a research report stating that it maintains the Xiaopeng Motor-W (09868) “neutral” rating and that the target price was raised from HK$50 to HK$57. Xiaopeng Motor delivered 92,000 new energy passenger vehicles in the last quarter of last year, up 52% year on year and 97% quarterly. The share of the mainland NEV market rose from 1.5% to 2.4% compared to the previous quarter, mainly driven by MONAM03 and P7+.

The bank estimates that Xiaopeng earned 16 billion yuan in the final quarter of last year (same below), up 23% year on year and 59% quarterly. The market's large-scale economic expansion is expected to offset the impact of MONAM03's lower pricing; it is also estimated that gross profit for the final quarter reached 2.2 billion yuan, up 169% year on year, and 41% quarterly. Gross margin is expected to reach 13.5%, up 7.3 percentage points year on year, and down 1.7 percentage points quarterly. The bank expects Xiaopeng's EBIT loss at the end of the quarter to be 2 billion yuan, and a non-GAAP net loss of 1.4 billion yuan. The bank reduced Xiaopeng's 2024 and 2025 non-GAAP net profit forecasts by 2% to 6%, respectively, to reflect the increase in Mona's sales share and lower the gross profit margin, but raised the non-GAAP net profit forecast by 2% to reflect favorable operating leverage.