Goldman Sachs: Raises Target Price for Xiaopeng Motors to HK$96 Expecting Seasonal Outperformance of Peers in the First Quarter of Next Year

Goldman Sachs released a research report stating that Xiaopeng Motors' performance in the third quarter met expectations, but its fourth quarter revenue guidance is expected to be lower than expectations, mainly due to slowing sales growth and increasing market competition. Goldman Sachs pointed out that although Xiaopeng's short-term sales momentum may be moderate and the number of new car models launched is limited, looking ahead to the first quarter of next year, Xiaopeng Motors' seasonal performance is expected to outperform peers as the company will introduce three new models of extended-range electric vehicles. According to management's comments on pre-orders for the X9 extended-range electric vehicle, orders for the extended range electric vehicle version may be three times higher than for the pure electric vehicle. For the full year next year, Goldman Sachs expects Xiaopeng's strong new car development pipeline and sustainable revenue contributions from Volkswagen to drive revenue growth by 40%. Economies of scale and continued cost reductions will increase gross margin, while continued research and development investments and improvements in accounts payable turnover will bring in a net profit of $2.2 billion under generally accepted accounting principles. The bank has raised its 12-month target price for its US stock from $24 to $25 and its Hong Kong stock target price from HK$94 to HK$96, maintaining a "buy" rating.