The Zhitong Finance App learned that Jefferies released a research report saying that it was deeply impressed by Xiaopeng Automobile-W (09868)'s ability to stabilize automobile profit margins under the price reduction war. With the improvement in cash conditions and the start of a strong product cycle in the second half of the year, it seems that it is currently on a trajectory to reverse losses. The bank predicts losses of RMB 4.5 and 3.6 per share for this year and next two years to reflect the latest product schedule. The target price will drop from HK$98.9 to HK$73, but it maintains a “buy” rating.

According to the report, the company's revenue for the fourth quarter of last year increased 1.54 times year-on-year to RMB 13.1 billion, and increased 53% quarterly. The net loss narrowed from RMB 2.5 billion in the third quarter of last year to RMB 1.3 billion in the fourth quarter of last year. The quarterly automobile profit margin was 4.2%, 2 percentage points higher than the bank's expectations. The current quarter's delivery guide of 21,000 to 22,500 vehicles is in line with the bank's expectations, and the revenue guidance is 5.8 billion to 6.2 billion yuan, which is a good sign of a better product portfolio.