Dahua Jixian: Maintaining Xpeng-W (09868) "Sale" Rating Target Price of HKD18

Dahua Jixian released a research report saying that maintaining the Xpeng-W (09868) "sale" rating. The company's profit performance is expected to be affected by price wars and market competition, maintaining net loss forecasts of 7.8 billion yuan and 6.13 billion yuan respectively for this year and next, and anticipates a net loss of 5.22 billion yuan and a target price of HKD18 in 2026.

According to the report, the company's net loss for the fourth quarter of last year narrowed to 1,348 billion yuan, less than expected, mainly due to falling raw material prices, which increased gross margin by 8.9% to 6.2% on a quarterly basis. The bank maintained the company's delivery forecast for this year and next two years of 200,000 vehicles and an average sales price forecast of RMB 175,000 and RMB 165,000, respectively.