Jinwu Financial News | Haitong Sec released a research report indicating that XPeng Motors (09868) achieved revenue of 10.1 billion yuan in Q3 2024, an increase of 18% year-on-year and 25% quarter-on-quarter. The net loss was 1.81 billion yuan, compared to a loss of 3.89 billion yuan in Q3 2023 and a loss of 1.28 billion yuan in Q2 2024.

The report states that the company’s gross margin for Q3 2024 is 15.3%, an increase of 18.0 percentage points year-on-year and 1.3 percentage points quarter-on-quarter; among them, the gross margin for autos is 8.6%, an increase of 14.7 percentage points year-on-year and 2.2 percentage points quarter-on-quarter; the profit margin for services and others is 60.1%. According to the company’s Q3 2024 performance announcement, the year-on-year growth of the gross margin for autos is mainly due to lower costs and improved model product mix; the quarter-on-quarter growth is mainly due to lower costs. According to XPeng Motors' official account, the XPeng P7+ received approximately 32,000 pre-orders in 24 hours post-launch, showing remarkable performance. The report believes that the successful launch of M03 and P7+ marks the beginning of a virtuous cycle for XPeng Motors’ large product cycle. This large product cycle will not only drive sales growth but also lead to healthier gross margins and cash flow, supporting the company’s R&D in AI vehicles.

The report forecasts that the company's revenue for 2024/25/26 will be 40.9/79/104.8 billion yuan, with a net income attributable to shareholders of -5.5/-2/3.2 billion yuan. The firm uses the PS method for company valuation, indicating that the market cap as of November 26, 2024, corresponds to PS ratios of 1.9/1.0/0.7 for 2024/25/26. Referencing comparable companies, the firm gives a PS valuation of 1.2-1.4 times for 2025, resulting in a reasonable value range of 54.27-63.32 HKD (based on an exchange rate of 1 HKD = 0.92 CNY). The rating remains at "Outperform market".