According to the Securities Times app, CICC released a research report stating that it maintains a "outperform industry" rating for xpeng-W (09868) and maintains profit forecasts for 2024/25. Considering the recent sector valuation improvements and the company's product cycle realization, the Hong Kong stock target price has been raised by 22% to 55 Hong Kong dollars. The company recently held consecutive smart driving and three-electric technology communication meetings for the P7+ model. The bank believes that the P7+ has industry-leading smart driving functions and high endurance with low energy consumption. The P7+ is expected to drive the company's sales growth after its listing. At this point, the bank believes that the company has a good investment opportunity.

CICC's main points are as follows:

Steady 3Q sales volume, performance expected to continue to improve.

The company's 3Q sales volume was 46,533 units, up 15.0% from the previous month. The M03 model performed well, with 10,540 units delivered cumulatively in 3Q since its listing on August 27. In terms of performance, although there was a slight decline in product structure month-on-month, 3Q scale looks positive. The bank expects cost savings in the supply chain to be realized, and revenue from the Volkswagen EEA architecture cooperation is planned to be included in the financial statements starting from 3Q. However, considering the company's recent new models and smart driving structure, costs may be relatively rigid. It is recommended to maintain a steady expectation for 3Q performance, and the bank expects a significant improvement in 4Q sales volume and financial statements.

Adopting a pure vision technology route, leading smart driving capabilities in the same class.

In terms of asiavets, the P7+ debuts with AI MediaTek 5.4.0, which can fully use end-to-end large models without distinction between scenes. In terms of algo, the P7+ supports intelligent driving in all scenarios and full-scene parking. The human-like improvement in smart driving is quadrupled, and the parking success rate of smart parking is increased by 20%. In addition, the P7+ uses a pure vision solution, with its AI eagle-eye vision solution adopting a single-pixel LOFIC architecture solution, which can achieve stronger information collection capabilities in backlight, high light difference, dark light, and other environments. Furthermore, this architecture solution significantly enhances the visual perception range, allowing clear resolution of semantic information.

Excellent energy consumption performance, P7+ has the potential for mass production.

In terms of the three electric aspects, the P7+ has an energy consumption of 11.6kWh per 100 kilometers, and the CLTC range can reach 710km. The main reason is that the company has increased investment in design and manufacturing, three-electric management, thermal management, and driving control, driving the improvement in range. Specifically, the P7+ has a drag coefficient of Cd 0.206, driving a range increase of 23.3 kilometers; equipped with efficient three-electric management, all models come standard with an 800V super-electric drive system, driving a range increase of 10 kilometers; equipped with X-HP 3.0 smart thermal management, driving a range increase of 26 kilometers; the P7+ has precise driving control capabilities, covering human driving and smart driving, driving a range increase of 17.6 kilometers. Overall, the industry believes that the P7+ is expected to drive the company into the higher growth potential 0.2 million yuan level market. In comparison, there is a limited supply of pure electric products in the 0.2 million yuan price range that are characterized by spaciousness, family travel, and smart driving. The P7+ model has advantages and potential for high volume in product development.

Risk

New car and autonomous driving demand are not as expected, and cooperation with Volkswagen is not as expected.