Tracking developments across tech supply chains, Tech Supply Chain Tracker

Tech Supply Chain Tracker

Tracking developments across tech supply chains

Equity Bottom-Up

<ul><li>XPeng and Nio abandon Nvidia Thor chip over delays, impacting production schedules and development timelines.</li><li>Wistron set to establish new plant in Vietnam in 2025, with potential expansion of current facilities, boosting local economy.</li><li>MSI launches made-in-India notebooks as part of market expansion strategy, tapping into growing demand for tech products in the region.</li></ul>

XPeng and Nio abandon Nvidia Thor chip over delays, impacting production schedules and development timelines.Wistron set to establish new plant in Vietnam in 2025, with potential expansion of current facilities, boosting local economy.MSI launches made-in-India notebooks as part of market expansion strategy, tapping into growing demand for tech products in the region.

Tech Supply Chain Tracker (19-Dec-2024): XPeng, Nio drop Nvidia Thor chip due to delays.

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

<ul><li>Upgrade to BUY. The success of Xpeng’s recent two new models, the Mona M03 and P7+ could help Xpeng better understand its target customers’ needs and increase the chance of success for its four new models in 2025.</li><li>We raise our FY25E sales volume forecast to 390,000 units accordingly.</li><li>Such topline growth, along with its improving GPM, could turn Xpeng profitable in FY26E, based on our estimates.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Upgrade to BUY. The success of Xpeng’s recent two new models, the Mona M03 and P7+ could help Xpeng better understand its target customers’ needs and increase the chance of success for its four new models in 2025.We raise our FY25E sales volume forecast to 390,000 units accordingly.Such topline growth, along with its improving GPM, could turn Xpeng profitable in FY26E, based on our estimates.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

XPEV US - Mona M03, P7+’s Success with 3Q24 GPM Beat Could Make Xpeng’s Breakeven Possible

Blue Lotus China New Economy Research, Blue Lotus Research Institute

Eric Wen

Blue Lotus China New Economy Research

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

<ul>
<li>C3Q24 results from LEAP Motors seems to indicate the profit margins of low-priced EV can reach high single digits.</li>
<li>We thus revised up XPEV's 2024-25 top line by 8% and 28% on successful launch of P7+, 2024-25 gross margins by 0.6ppt and 1.7ppt</li>
<li>Despite these improvements, we opt to maintain the rating of SELL and TP of US$5 unchanged as XPEV's path to profitability is still unclear.</li>
</ul>


C3Q24 results from LEAP Motors seems to indicate the profit margins of low-priced EV can reach high single digits.
We thus revised up XPEV's 2024-25 top line by 8% and 28% on successful launch of P7+, 2024-25 gross margins by 0.6ppt and 1.7ppt
Despite these improvements, we opt to maintain the rating of SELL and TP of US$5 unchanged as XPEV's path to profitability is still unclear.


[XPeng Inc. (XPEV US, SELL, TP US$5) Company Update]: Material and Component Pricing Drove Cost Down

<ul>
<li>XPeng (XPEV) reported C2Q24 top line, non-GAAP operating loss and GAAP net income in line, 5.4% worse and 7.5% better than our estimate. </li>
<li>We raised our MONA forecast by 13% but still significantly below XPEV’s guidance. We believe management guidance is overly optimistic;</li>
<li>We maintain a SELL rating on the stock and TP unchanged.</li>
</ul>


XPeng (XPEV) reported C2Q24 top line, non-GAAP operating loss and GAAP net income in line, 5.4% worse and 7.5% better than our estimate. 
We raised our MONA forecast by 13% but still significantly below XPEV’s guidance. We believe management guidance is overly optimistic;
We maintain a SELL rating on the stock and TP unchanged.


[XPeng Inc. (XPEV US, SELL, TP US$2) Earnings Review]: Delivery Goal for MONA M03 Is Unrealistic

<ul><li>Maintain HOLD. Xpeng’s 2Q24 earnings were largely in line with our forecast. Although we assume its 2H24E sales volume to more than double HoH, we see no loss narrowing HoH in 2H24E.</li><li>We believe that Xpeng’s vehicle gross margin could be capped by the lower-priced Mona models, as the company now bets on these models to boost sales.</li><li>We are of the view that the underlying rationale of such strategy is Xpeng’s diminishing brand image, especially as peers are narrowing the gap in autonomous driving (AD) technologies.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Maintain HOLD. Xpeng’s 2Q24 earnings were largely in line with our forecast. Although we assume its 2H24E sales volume to more than double HoH, we see no loss narrowing HoH in 2H24E.We believe that Xpeng’s vehicle gross margin could be capped by the lower-priced Mona models, as the company now bets on these models to boost sales.We are of the view that the underlying rationale of such strategy is Xpeng’s diminishing brand image, especially as peers are narrowing the gap in autonomous driving (AD) technologies.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Xpeng Inc. (XPEV US) - Mona M03 May Not Be the Game-Changer

China

XPeng Inc. designs, produces, and distributes electric vehicles. The Company designs, develops, manufactures and markets smart smart electric vehicles, as well as finance, parts, and maintenance services. XPeng serves customers in China.

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XPeng (XPEV US)

Tech Supply Chain Tracker (19-Dec-2024): XPeng, Nio drop Nvidia Thor chip due to delays.

XPeng and Nio switch from Nvidia Thor chip, Wistron to open new plant in Vietnam, MSI introduces Indian-made notebooks, Honda and Nissan mull...

Tech Supply Chain Tracker

XPEV US - Mona M03, P7+’s Success with 3Q24 GPM Beat Could Make Xpeng’s Breakeven Possible

The success of Xpeng’s recent two new models, the Mona M03 and P7+ could help Xpeng better understand its target customers’ needs and increase the...

CMB International

[XPeng Inc. (XPEV US, SELL, TP US$5) Company Update]: Material and Component Pricing Drove Cost Down

LEAP Motors' C3Q24 results show potential for high profit margins on low-priced EVs, prompting a slight increase in XPEV's revenue and gross...

Blue Lotus Research Institute

[XPeng Inc. (XPEV US, SELL, TP US$2) Earnings Review]: Delivery Goal for MONA M03 Is Unrealistic

XPeng reported mixed financial results for the second quarter, with revenue slightly below expectations and net income exceeding estimates. We...

Blue Lotus Research Institute

Xpeng Inc. (XPEV US) - Mona M03 May Not Be the Game-Changer

Maintain HOLD. Xpeng’s 2Q24 earnings were largely in line with our forecast. Although we assume its 2H24E sales volume to more than double HoH, we...

CMB International

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Tech Supply Chain Tracker (19-Dec-2024): XPeng, Nio drop Nvidia Thor chip due to delays.

XPeng and Nio switch from Nvidia Thor chip, Wistron to open new plant in Vietnam, MSI introduces Indian-made notebooks, Honda and Nissan mull...

Tech Supply Chain Tracker

XPEV US - Mona M03, P7+’s Success with 3Q24 GPM Beat Could Make Xpeng’s Breakeven Possible

The success of Xpeng’s recent two new models, the Mona M03 and P7+ could help Xpeng better understand its target customers’ needs and increase the...

CMB International

[XPeng Inc. (XPEV US, SELL, TP US$5) Company Update]: Material and Component Pricing Drove Cost Down

​LEAP Motors' C3Q24 results show potential for high profit margins on low-priced EVs, prompting a slight increase in XPEV's revenue and gross...

Blue Lotus Research Institute

[XPeng Inc. (XPEV US, SELL, TP US$2) Earnings Review]: Delivery Goal for MONA M03 Is Unrealistic

​XPeng reported mixed financial results for the second quarter, with revenue slightly below expectations and net income exceeding estimates. We...

Blue Lotus Research Institute

Xpeng Inc. (XPEV US) - Mona M03 May Not Be the Game-Changer

Maintain HOLD. Xpeng’s 2Q24 earnings were largely in line with our forecast. Although we assume its 2H24E sales volume to more than double HoH, we...

CMB International

LEAP Motors' C3Q24 results show potential for high profit margins on low-priced EVs, prompting a slight increase in XPEV's revenue and gross...

XPeng reported mixed financial results for the second quarter, with revenue slightly below expectations and net income exceeding estimates. We...