Understanding the Market | XPENG-W continues to drop over 4%, third quarter Non-GAAP net loss narrows to 1.532 billion yuan
XPENG-W's stock price continues to decline, with a drop of over 4%, currently reported at HKD 48.2, with a transaction volume of HKD 519 million. The company released its Q3 2024 performance, with automotive sales revenue of 8.8 billion yuan, a year-on-year increase of 12.1%; net loss of 1.81 billion yuan, a year-on-year narrowing of 53.5%. Non-GAAP net loss was 1.532 billion yuan, lower than market expectations. Goldman Sachs pointed out that gross profit exceeded expectations, but due to investment losses, adjusted net profit was below expectations
According to Zhitong Finance APP, XPeng-W (09868) continued to decline by over 4%, dropping 4.27% to HKD 48.2 as of the time of writing, with a transaction volume of HKD 519 million.
In terms of news, XPeng recently released its performance for the third quarter of 2024, with automotive sales revenue of RMB 8.8 billion (same unit below), an increase of 12.1% year-on-year; gross margin of 15.3%, up 1.3 percentage points quarter-on-quarter; automotive gross margin of 8.6%, an increase of 14.7 percentage points year-on-year; total revenue of RMB 10.1 billion, an increase of 18.4% year-on-year; a quarter-on-quarter growth of 24.5%; net loss of RMB 1.81 billion, a year-on-year narrowing of 53.5%, but a quarter-on-quarter expansion of 40.7%. The non-GAAP quarterly net loss was RMB 1.532 billion, compared to a net loss of RMB 2.79 billion in the same period last year.
Goldman Sachs released a research report stating that XPeng's gross profit in the third quarter exceeded market expectations, mainly due to higher production scale reducing fixed costs per vehicle, as well as further recognition of revenue from Volkswagen's technical services. However, due to investment losses from long-term investments, XPeng's adjusted net profit in the third quarter was 13% lower than Goldman Sachs' expectations. XPeng's EBIT in the third quarter was also 2% lower than market expectations, which the firm believes is due to non-cash losses arising from fair value changes related to the group's acquisition of Didi's smart vehicle business