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

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

Blue Lotus China New Economy Research, Blue Lotus Research Institute

Eric Wen

Blue Lotus China New Economy Research

Equity Bottom-Up

<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