CICC: Maintains XPENG-W (09868) outperform industry rating with a target price of HK$90.

CICC released a research report stating that XPENG-W (09868) currently corresponds to 1.2/1.1x P/S for Hong Kong and US stocks in 2026, respectively. They maintain an outperform industry rating, maintain profit forecasts for 2026/27, and maintain target prices of HKD 90/USD 23 for Hong Kong and US stocks. The SOTP valuation reference is in the main text, with an upside potential of 26%/31% over the current stock price. The company announced its 4Q25 performance: revenue was RMB 22.25 billion, Non-GAAP net profit was RMB 510 million, achieving its first profitable quarter, meeting market and bank expectations. Main points of CICC: Gross profit margin hits a new high, achieving the first profitable quarter The company delivered 116,249 vehicles in 4Q, with overall revenue increasing by +38.2% to RMB 22.25 billion. The comprehensive gross profit margin was 21.3%, reaching a new historical high. The gross profit margin for the automotive business was 13.0%; other business gross profit margin increased by RMB 8.5 billion to RMB 31.8 billion, mainly due to the technical service support reaching the delivery milestone, and the growth in carbon credit business revenue. R&D expenses in 4Q were RMB 2.87 billion, up by +43.2% year-on-year; sales and management expenses were RMB 2.79 billion, up by +22.7% year-on-year. Other income was RMB 840 million, Non-GAAP net profit was RMB 510 million, achieving the first profitable quarter. Dual-cycle of one vehicle continues, steady growth in overseas markets On the product side, the company plans to fully deploy the "dual-cycle of one vehicle" strategy in 2026, by introducing X9, P7+, G7, GX and other models equipped with the "Kunpeng" super-range extension technology, focusing on the mainstream market of 100,000-400,000 yuan, with AI and smart driving experience as core differentiation barriers, enhancing product definition capabilities, and extending the hot-selling product cycle. The flagship full-size six-seater SUV, GX, is scheduled to be available for pre-order in 2Q26. In terms of overseas markets, with channel expansion and the introduction of four global models, the company plans to double its overseas sales to approximately 90,000 units in 2026. Increase in physical AI investment, Siasun Robot & Automation plans to produce thousands of units per month by the end of the year The company stated that its investment in physical AI research and development in 2026 has increased to RMB 7 billion. The company's VLA 2.0 has passed physical road tests in early March and plans to gradually push it to users. The company aims to transform advanced autonomous driving features from early adopters to mainstream market functions. The GX model equipped with VLA 2.0 has obtained public road test permits in Guangzhou and is undergoing L4 level public road tests. In the second half of the year, pilot passenger operations are planned to validate technology, user experience, and business models. Regarding Siasun Robot & Automation, a mass production base for humanoid Siasun Robot & Automation has been started construction in Guangzhou, with plans to produce over 1,000 units per month by the end of 2026. Risk warning: New car and autonomous driving demand may fall short of expectations, and cooperation with the public may fall short of expectations.