CICC: Maintains XPENG-W target at HKD 108, maintains "Outperform Industry" rating
CICC maintains a target price of HKD 108 for XPENG-W, with a rating of "Outperform the Industry." The G7 model has shown strong performance since its launch, with over 10,000 orders in 9 minutes, indicating robust market demand. It is expected that the company will achieve positive profitability by 2025, with a continued optimistic outlook on the product cycle
According to the Zhitong Finance APP, China International Capital Corporation (CICC) released a research report stating that the current stock price of XPeng Motors-W (09868) corresponds to a 1.5x P/S for 2025, maintaining an outperform rating for the industry and keeping profit forecasts unchanged. The target price for the Hong Kong stock is set at HKD 108, indicating a 46% upside potential compared to the current stock price, corresponding to a 2.2x P/S for 2025. On July 3rd, the company held a spring new product launch conference, officially launching the XPeng G7 model, which comes in three versions, with pricing exceeding market expectations.
CICC's main points are as follows:
XPeng G7 officially launched, with over 10,000 orders in 9 minutes
The company officially launched the G7 model, with a starting price range of RMB 195,800 to RMB 225,800, and offers user benefits including Nappa seats and electric doors, with pricing significantly lower than the pre-sale price. Highlights of the G7 include the industry's first L3-level computing platform, locally deployed VLA+VLM models, the "Chasing Light Panoramic" AR-HUD technology co-developed with Huawei, and the Taiji AI chassis. While emphasizing its family-oriented positioning, the G7 also highlights spaciousness, comfort, and safety, differentiating itself from some competitors. Overall, the firm believes that the G7 model continues the company's strategy of creating best-selling products by offering competitive pricing, rich standard configurations, and intelligent driving features, allowing consumers to achieve technological equality and a comfortable product experience. Currently, according to the sales report disclosed by the company, the number of orders for the G7 model exceeded 10,000 in just 9 minutes, demonstrating strong market demand.
2Q continues strong product cycle, blockbuster capability expected to bring profitability
In 2Q25, the company's total monthly sales reached 103,181 vehicles, maintaining a high monthly sales level of over 30,000 units, and remaining at the forefront of new energy vehicle companies, continuing the previously strong product cycle. Additionally, the firm believes that the official launch of the G7 model and its order performance once again validate the company's ability to create blockbuster models. Combined with the super extended-range electric vehicle model set to launch in 2H25, the firm remains optimistic about the company's product cycle. From a financial perspective, market expectations for profitability among new energy vehicle companies continue to rise. The firm believes that the company's product cycle in 2025 will be strong, and the company's guidance suggests that it may achieve quarterly profitability this year, recommending investors to continue paying attention.
Turing chip officially onboard, creating a comprehensive AI ecosystem
The Turing chip, designed specifically for AI, features a 40-core processor capable of running large models with 30 billion parameters locally. This chip integrates two NPUs and a domain-specific architecture for neural networks, providing powerful computing capabilities for AI vehicles. Additionally, the Turing chip has an independent safety island function that can detect vehicle safety in real-time and is equipped with two independent image ISPs to handle low-light situations such as nighttime, rainy days, and backlighting, providing clearer perception capabilities. The Turing chip is officially launched with the G7, and in the long term, the company plans to apply it in various fields such as AI robots, AI vehicles, and flying cars. Overall, the firm believes that the company is deeply engaged in and continuously investing in AI technology, gradually realizing a comprehensive AI ecosystem of smart electric vehicles, robots, and flying cars. The diverse application scenarios are expected to empower the company's AI technology capabilities for continuous iteration and maintain the company's AI capabilities at an industry-leading level Risk Warning: Demand for new cars and autonomous driving is below expectations, and new car deliveries and cooperation with Volkswagen are not meeting expectations
