Pacific Securities Covers Xpeng, Expects X9 and G7 Launch in H2
The team has set a price target of HK$71.86 for Xpeng‘s shares traded in Hong Kong, indicating a potential increase of 25.63 percent.
China-based brokerage Pacific Securities has initiated coverage of Xpeng (NYSE: XPEV) with a Buy rating and predicts that the electric vehicle (EV) manufacturer will introduce two new models in the second half of this year.
Xpeng is expected to launch the X9 MPV and a new SUV called the G7 in the latter part of 3. The brokerage stated in a research note that the company is on track to deliver 130, units by the end of this year, driven by the new models as well as the P7i and G6.
On May 26, Xpeng chairman and CEO Xiaopeng announced on Weibo that, in addition to the G6, the company has been developing a new MPV, the X9. Mr. stated, “We will target the younger demographic with this product.”
G6 SUV was officially launched in China on June 29, and deliveries began on July 10. competes with the Tesla Model Y. However, based on current information, the spy shot actually depicts the Xpeng G6. There have been no recent rumors about the Xpeng G7.
According to data monitored by Auot in China, Xpeng sold 41,435 vehicles in the first half of the year, representing a 39.93 percent decrease compared to the same period last year.
If Xpeng achieves its goal of delivering 130,000 units this year, it would mean an average of approximately 15,000 units per month in the second half of the year. Xpeng management has previously stated that they aim to deliver least 10,000 units of the G6 per month.
Pacific Securities anticipates that, driven by industry recovery, platform upgrades, new car launches, and the accelerated availability of City NGP, Xpeng will surpass 15,000 units per month in the third quarter and reach 20,000 units per month the fourth quarter.
The team highlighted that the Xpeng P7i has been the company’s best-selling model for four consecutive months, with June sales totaling 5,196 units, accounting for 60.3 percent of the month’s sales.
Furthermore, as of June, Xpeng has introduced its City NGP feature in Beijing, Shanghai, Guangzhou, and Shenzhen, enabling recognition of traffic lights and quick passage through intersections nationwide.
The team expects Xpeng’s City NGP function to cover 50 cities by the end of the year and complete the closed loop full-scene smart driving functions by 2024.
The team has set a target price of HK$71.86 for Xpeng’s shares traded in Hong Kong but did not provide a price target for the company’s US shares.
In Hong Kong trading today, Xpeng closed HK$57.2, up 0.26 percent. The target price suggests a potential upside of 25.63 percent.