Chinese EV maker XPeng's Q2 revenue more than doubles, loss narrows on higher deliveries

Overview

• XPeng Q2 revenue rises 125.3% yr/yr to RMB18.27 bln ($2.55 bln)

• Vehicle deliveries increase 241.6% yr/yr to 103,181 units

• Net loss narrows to RMB0.48 bln from RMB1.28 bln a year ago

Outlook

• Company expects Q3 deliveries between 113,000 and 118,000 vehicles, up 142.8% to 153.6% YoY

• XPeng forecasts Q3 revenue between RMB19.6 bln and RMB21.0 bln, up 94% to 107.9% YoY

Result Drivers

• VEHICLE DELIVERIES - XPeng's vehicle deliveries surged 241.6% year-over-year, driving revenue growth

• MARGIN IMPROVEMENTS - Gross margin improved to 17.3% and vehicle margin to 14.3%, attributed to cost reductions and better product mix

• TECHNOLOGY UPGRADES - Completion of upgrades to technology platforms for smart and electrification technologies contributed to performance, per CEO Xiaopeng He

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 19 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the auto & truck manufacturers peer group is "buy"

• Wall Street's median 12-month price target for Xpeng Inc is $25.00, about 20.4% above its August 18 closing price of $19.90

Press Release: ID:nGNX4qKqdw