Jingu Finance | Bocom Intl released research reports, stating that in the third quarter, Xiaopeng Autos (09868) revenue was 10.1 billion yuan (RMB, the same below), a 24.5% increase from the previous month, with auto sales of 0.046 million units, a 54.0% increase from the previous month. The third-quarter gross margin was 15.3%, with auto gross margin at 8.6%, up 2.2 percentage points from the previous month, exceeding the market and the bank's expectations. Xiaopeng Autos expects the total revenue in the fourth quarter to be between 15.3 billion yuan and 16.2 billion yuan, an annual increase of about 17.2% to 24.1%. The car delivery volume will be between 0.087 million and 0.091 million units, an annual increase of approximately 44.6% to 51.3%. The bank pointed out that the strong sales of vehicle models will support the fourth quarter and first quarter of next year sales, and the gross margin and loss situation will improve.

The bank maintains its previous view that the product strength and cost performance positioning of M03 and P7+ will have a positive impact on the models to be released next year. At the same time, as Xiaopeng has not announced a timetable for the extended-range models, the bank believes that the market has not yet priced in the role of extended range in driving sales, and there is still room for sales growth next year. The bank maintains a buy rating and a target price of HK$77.36/US$19.91, corresponding to 2 times the 2025 forecast p/s.