Rating Quick Look | Xiaomi's target price raised after SU7 release! XPeng Motors faces price cuts

Jefferies is deeply impressed by XPeng's ability to stabilize car profit margins in the price war. With improved cash flow and a strong product cycle starting in the second half of the year, XPeng appears to be on track to turn losses around. The bank predicts that XPeng will incur losses of RMB 4.5 and 3.6 per share in the next two years to reflect the latest product schedule

Jefferies: Lower XPeng's target price from HKD 98.9 to HKD 73, maintaining a "buy" rating.

The report indicates that XPeng's revenue in the fourth quarter of last year increased by 154% year-on-year to 13.1 billion yuan, and by 53% quarter-on-quarter. Net loss narrowed from 2.5 billion yuan in the third quarter of last year to 1.3 billion yuan in the fourth quarter of last year. The quarterly car profit margin is 4.2%, 2 percentage points higher than the bank's expectations.

The current quarter delivery guidance of 21,000 to 22,500 vehicles meets the bank's expectations, with revenue guidance of 5.8 billion to 6.2 billion yuan, indicating a positive sign for a better product mix.

The bank is deeply impressed by XPeng's ability to stabilize its car profit margin in the face of price wars. With improved cash position and a strong product cycle starting in the second half of the year, XPeng appears to be on track to turn its losses around. The bank predicts a loss per share of 4.5 and 3.6 yuan for XPeng in the next two years to reflect the latest product timeline.

Huatai Securities: Gives BYD a "buy" rating

Reasons: 1) Performance in 2023 meets expectations, with a sequential decline in profit in the fourth quarter;

Economies of scale and lower battery costs will increase the company's overall gross and net profit levels;
Benefiting from cost impact, the profitability per vehicle for the whole year has improved, but the net profit per vehicle in Q4 has declined sequentially;
The full release of cost amortization in Q1 2024 is not expected, and it is anticipated that net profit per vehicle will decrease significantly;
Growth in high-end models and exports will drive the company's profitability.

Orient Securities: Maintains a "buy" rating for Xiaomi Corporation-W with a highest target price of HKD 19.31, an increase of 14.19% from the previous highest target price.

According to Wind data, in the past month, a total of 18 institutions have rated Xiaomi, as follows:

Rating Date	Rating Institution	New Rating	Previous Rating	Rating Direction	Highest Target Price (HKD)	Target Price Change (%)
March 29	CICC	Outperform	Outperform	Maintain	18	0.00
March 28	Orient Securities	Buy	Buy	Maintain	19.31	14.19
March 24	Huatai Securities	Buy	Buy	Maintain	20	0.00
March 22	Dongwu Securities	Buy	Buy	Maintain	/	/
March 22	CITIC Securities	Buy	Buy	Maintain	18.4	6.36
March 22	HSBC	Buy	Buy	Maintain	20.2	2.54
March 21	Huaxing Securities	Hold	Hold	Maintain	15	3.45
March 21	Guoyuan International	Buy	Buy	Maintain	18.6	20.78
March 20th	Huaxing Securities (Hong Kong)	Hold	Hold	Maintain	15	3.45
March 20th	CICC	Outperform	Outperform	Maintain	18	13.92
March 20th	Macquarie	Outperform the market	Outperform the market	Maintain	27.74	2.07
March 20th	Goldman Sachs	Buy	Buy	Maintain	18.9	4.42
March 20th	Everbright Securities	Increase holdings	Increase holdings	Maintain	/	/
March 20th	CMB International	Buy	Buy	Maintain	20.25	3.64
March 20th	JP Morgan Securities	Increase holdings	Increase holdings	Maintain	21	-8.70
March 20th	Minsheng Securities	Recommend	Recommend	Maintain	/	/
March 6th	Industrial Securities	Buy	Buy	Maintain	/	/