The team has a HK$71.86 price target on Xpeng's Hong Kong-traded shares, implying an upside of 25.63 percent.
(Image credit: CnEVPost)
China-based brokerage Pacific Securities initiated coverage of Xpeng (NYSE: XPEV) with a Buy rating and expects the electric vehicle (EV) maker to launch two additional new models in the second half of this year.
Xpeng is expected to launch the X9 MPV and a new SUV, the G7, in the second half of 2023, and the company is on track to deliver 130,000 units for the full year this year, driven by the new models and the P7i and G6, the brokerage said in a research note today.
On May 26, Xpeng chairman and CEO He Xiaopeng said in a Weibo post that in addition to the G6, Xpeng has been building a new MPV, the X9.
"We will open up the MPV market for the younger demographic with this product," Mr. He said at the time.
The company officially launched the G6 SUV in China on June 29, and deliveries of the model, which competes with the Tesla Model Y, began on July 10.
On September 21, 2022, Weibo auto blogger @德卤爱开车 shared a spy photo claiming that the model was the Xpeng G7, internally codenamed F30.
However, from what is now known, the spy shot is actually the Xpeng G6. There have not been any new rumors about the Xpeng G7 in the past few months.
Xpeng sold 41,435 vehicles in the first half of the year, down 39.93 percent from 68,983 in the same period last year, data monitored by CnEVPost show.
If Xpeng is able to achieve 130,000 deliveries for this year, that would mean it would deliver an average of about 15,000 units per month in the second half of the year.
Xpeng management has previously mentioned that the company's target for the G6 is to deliver at least 10,000 units per month.
Driven by a combination of industry recovery, platform upgrade, new car launches and accelerated availability of City NGP, Xpeng is expected to cross 15,000 units per month in the third quarter and touch 20,000 units per month in the fourth quarter, Pacific Securities said.
The team noted that the Xpeng P7i has been Xpeng's best-selling model for four consecutive months, with June sales amounting to 5,196 units, contributing 60.3 percent of the month's sales.
In addition, as of June, Xpeng has launched its City NGP feature in Beijing, Shanghai, Guangzhou, and Shenzhen, and has opened up the ability to recognize traffic lights and pass through intersections quickly across the country, the team said.
Xpeng's City NGP function is expected to cover 50 cities by the end of the year, and complete the closed loop of full-scene smart driving functions by 2024, the team said.
The team has a target price of HK$71.86 for Xpeng's Hong Kong-traded shares, and did not provide a price target for the EV maker's US shares.
Xpeng closed up 0.26 percent to HK$57.2 in Hong Kong today, and the target price implies a 25.63 percent upside.
(Image credit: @德卤爱开车)
