Bocom Intl released a report stating that Xiaopeng-W (09868.HK) sales in the fourth quarter are expected to record significant improvement. Starting from the third quarter of this year, Xiaopeng will enter a new product release cycle and will release multiple new models within the next three years, covering the price range of RMB 100,000 to 400,000 yuan (same below). The first model of the MONA series is an A-class pure electric sedan with a price lower than RMB 200,000, which is characterized by its beautiful design, large interior space and high degree of intelligence.

Looking ahead to the fourth quarter, Xiaopeng will launch the B-class pure electric sedan F57. F57, through technological progress, became the first product to achieve a cost reduction of 25%, and is expected to have higher gross margins than existing models (except X9). With the delivery of these two new products, the bank expects Xiaopeng's sales in the fourth quarter to increase significantly on a quarterly basis.

Bocom Intl pointed out that Xiaopeng's stock has limited downside potential, and its rating was raised from "sell" to "neutral". Xiaopeng's monthly sales have returned to the level of ten thousand units in May. With sales channel changes and new car releases in the second half of the year, its sales are expected to continue to improve during the year. Based on adjusted revenue forecasts and exchange rate fluctuations, the target price of the H shares was raised from HKD 29.96 to HKD 30.53.