Description of the event
In the second quarter of 2024, the company achieved revenue of 8.111 billion yuan, +60.22% year-on-year, net loss of 1.285 billion yuan, loss narrowing by 1.52 billion yuan year-on-year, non-GAAP net loss of 1.22 billion yuan, and loss narrowing by 1.45 billion yuan year-on-year.
Incident comments
Xiaopeng Motor's revenue performance continued to improve. Driven by increased G9 and G6 deliveries and mass service revenue, the gross margin reached 14.0%, growing for four consecutive quarters. In the automobile business, G9 and G6 deliveries increased sharply in the second quarter, bicycle revenue increased significantly year-on-year, and gross margin improved. Automobile business revenue was 6.82 billion yuan, +54.1% year over year, delivery volume was 0.0302 million vehicles, +30.2% year over year, bicycle revenue was 0.226 million yuan, +18.4% year over year, and -11.2% month on month. Looking at the delivery structure, G6/G9/X9 delivered 10920/7438/ 5271 vehicles respectively, accounting for 36.2%/24.6%/17.4% respectively. The decline in X9 sales led to a month-on-month decline in bicycle revenue. The gross margin of the automobile business was 6.4%, +15.0pct year over year and +0.9pct month-on-month. The scale effect increased in the second quarter, compounded costs decreased, and gross margin increased significantly from month to month.
Service revenue and mass service revenue continued to grow, greatly increasing the gross profit margin of the service business. The company's service revenue was 1.293 billion yuan, +102.5% year over year and +28.8% month over month. The gross margin of the service business was 54.3%, +25.6pct year over year and +0.3pct month-on-month. The gross margin of the mass service business is high, which greatly increases the overall gross profit margin of the service business. Looking ahead, mass service revenue will contribute steadily every quarter in the future, while EEA revenue will begin to be confirmed in the second half of the year, which is expected to further increase service business revenue and growth.
R&D expenditure for the second quarter was 1.47 billion yuan, up 7.3% year on year, up 8.6% month on month, R&D expenditure ratio was 18.1%, down 8.9%/2.5% year on month. S&G was 1.57 billion yuan, up 1.9% year on year and 13.3% month on month. S&G's fee rate was 19.4%, down 11.1%/1.8% year over month. The month-on-month increase in expenses was mainly due to the expansion of research and development of new vehicles, increased commissions paid to franchisees, and increased marketing, promotion and advertising expenses. The estimated annual R&D expenses are 7-7.5 billion yuan.
2024Q3 is expected to deliver 0.041-0.045 million vehicles, up 2.5-12.5% year on year, and expected revenue of 9.1-9.8 billion yuan, up 6.7%-14.9% year on year. With channel changes and increased marketing, the company's sales volume is expected to increase steadily every month. The MONA model began pre-sale in August and was officially launched and delivered on August 27; the P7+ is expected to launch in the fourth quarter. With the release of the two new cars, the company is expected to achieve a significant increase in sales in the second half of the year. At the same time, Xiaopeng Motor continues to make efforts in overseas markets, and is expected to continue to contribute to sales and revenue growth.
Xiaopeng fully launched XOS 5.2.0 on July 30. XNGP was upgraded to be easy to use all over the country, and intelligent driving continues to lead the way. With channel changes and the strengthening of the marketing system, the company's sales volume is expected to increase steadily. MONA went public on August 27 to begin the company's new car cycle. The effects of scale improvement, platform and technology cost reduction will be further reflected. The business model expansion combined with software profits continues to grow, and the company's future profits are highly flexible. The company's revenue in 2024 is estimated to be 41.2 billion yuan, corresponding to PS 1.1X. Volkswagen Software's revenue reflects significant improvements in financial performance. The company is expected to enter an inflection point in the new car cycle and give it a “buy” rating.
Risk warning
1. Economic recovery is weaker than expected;
2. Increased competition in the industry weakens corporate profits.