JPMorgan's research report pointed out that thanks to the rapid increase in production of new car models P7 Plus and Mona M03, XPeng Motors (09868) achieved profitability in the third quarter of 2024 that basically met expectations, with vehicle profit margins higher than expected, and fourth quarter delivery volume guidance exceeding market expectations.

The bank holds an optimistic view on the overall Chinese automotive industry, especially in the integration of new energy vehicles and artificial intelligence technologies. It is bullish on XPeng Motors' potential in the field of smart automobiles in the future. With advancements in technology and increasing demand from consumers for intelligent and personalized features, the bank believes the Chinese automotive market will see a new competitive landscape, where XPeng Motors' leading position in autonomous driving and artificial intelligence will give it a competitive advantage.

The bank is bullish on the strong sales momentum of XPeng's new models, Mona M03 and P7 Plus. By 2025, the bank's estimation is that, with the addition of new models, sales are expected to further reach around 0.392 million units, nearly doubling from 2024. Nevertheless, the bank believes that XPeng and its Chinese counterparts will have relatively high sensitivity to sales and the momentum of new car models.

The bank has raised its profit forecast for the fourth quarter of 2024 to reflect the strong fourth-quarter guidance of 2024, while basically maintaining unchanged profit forecasts for 2025-2026. It maintains a 'shareholding' rating with a target price of $17 / HK$65.