Hong Kong Stock Market News | XPENG-W falls more than 7%, hitting a new 7-month low, Citigroup suggests that Tesla's price reduction may pose a threat to XPENG-W.
XPENG-W fell more than 7%, hitting a new low of HKD 39.75 since June last year. As of the time of writing, it has dropped 7.55% to HKD 39.8, with a turnover of HKD 256 million. In terms of news, Citigroup recently pointed out in a research report that the pure electric vehicle market may face challenges this year due to an oversupply of models, especially in the RMB 200,000 to RMB 300,000 market segment where most of XPeng's products are positioned. The competition will be more intense. In addition, Tesla's price reduction in the Chinese market may also pose a threat to XPENG-W. The bank has lowered XPENG-W's target price from HKD 41 to HKD 39.6, maintaining a "sell" rating but removing the high-risk rating. The bank stated that considering the competition in the electric vehicle market, it has slightly lowered XPENG-W's sales forecasts for 2023 to 2025 from 155,000, 260,000, and 338,000 units to 142,000, 250,000, and 325,000 units respectively. It has also adjusted the gross margin forecasts for the same period to 1.9%, 7.7%, and 9.6%, while increasing the net loss forecasts by 1% to 5%, to RMB 11.46 billion, RMB 9.96 billion, and RMB 9.36 billion respectively.
Zhitong App learned that XPENG-W (09868) fell more than 7%, hitting a new low of HKD 39.75 since June last year. As of the time of writing, it has dropped 7.55% to HKD 39.8, with a turnover of HKD 256 million.
On the news front, Citigroup recently pointed out in a research report that the pure electric vehicle market may face challenges this year due to an oversupply of models, especially in the RMB 200,000 to 300,000 market segment where most of XPeng's products are positioned. The competition will be more intense. In addition, Tesla's price reduction in the Chinese market may also pose a threat to XPENG-W. The bank has lowered XPENG-W's target price from HKD 41 to HKD 39.6, maintaining a "sell" rating but removing the high-risk rating.
The bank stated that considering the competition in the electric vehicle market, it has slightly lowered XPENG-W's sales volume forecast for 2023 to 2025 from 155,000, 260,000, and 338,000 units to 142,000, 250,000, and 325,000 units respectively. It has also adjusted the gross margin forecast for the period to 1.9%, 7.7%, and 9.6%, while raising the net loss forecast by 1% to 5%, to RMB 11.46 billion, RMB 9.96 billion, and RMB 9.36 billion respectively.