Morgan Stanley: XPENG-W's sales and profit margins will soar in the second half of the year, target price HKD 101
Morgan Stanley released a research report stating that XPeng-W benefits from the expansion of average selling price (ASP), favorable product mix, cost reductions, and economies of scale. It is expected that its automotive profit margin will rise in the second quarter and further increase in the second half of the year. Management also emphasized that the profit margin of new models remains healthy at double digits. Morgan Stanley believes that although the performance guidance for the second quarter is relatively cautious, it is confident that the sales and profit margins will surge again in the second half of this year, and the earnings in the fourth quarter may boost market sentiment. The target price for US stocks is maintained at $26 with an "Overweight" rating. The target price for Hong Kong stocks is HKD 101. The report states that XPeng will launch the Mona Max on May 28, as there is a lack of similar products with L2+ AD capabilities in the market under 150,000 RMB. Therefore, Morgan Stanley believes that the Mona Max will stand out. Regarding AI, Morgan Stanley believes that the group's AI plans are in full swing. With the launch of the AI Turing chip and the world foundation model with 72 billion parameters, XPeng aims to significantly enhance its L2+ ADAS capabilities and plans to launch humanoid robots in 2026
According to the Zhitong Finance APP, Morgan Stanley released a research report stating that XPeng-W (09868) will benefit from the expansion of average selling price (ASP), favorable product mix, cost reductions, and economies of scale. It is expected that its automotive profit margin will rise in the second quarter and further increase in the second half of the year. Management also emphasized that the profit margin of new models remains healthy at double digits. Morgan Stanley believes that although the performance guidance for the second quarter is relatively cautious, it expects a resurgence in sales and profit margins in the second half of this year, as well as potential earnings in the fourth quarter to boost market sentiment. The target price for US stocks is maintained at $26 with an "Overweight" rating. The target price for Hong Kong stocks is HKD 101.
The report states that XPeng will launch the Mona Max on May 28, as there is a lack of similar products with L2+ AD functions in the market under 150,000 RMB. Therefore, Morgan Stanley believes that the Mona Max will stand out. Regarding AI, Morgan Stanley believes that the group's AI plan is in full swing. With the launch of the AI Turing chip and the world’s foundational model with 72 billion parameters, XPeng aims to significantly enhance its L2+ ADAS capabilities and plans to launch a humanoid robot in 2026
