Core Viewpoint - Goldman Sachs upgraded Xpeng Motors (XPEV.US, 09868) to a buy rating with a 12-month target price of $24/94 HKD, indicating an implied upside potential of 29%/27%. The firm sees the results of various efforts, including organizational and supply chain restructuring, cost reduction through technology, and platformization, enhancing the company's product and cost structure competitiveness, leading to greater visibility for sustainable sales growth and margin improvement [1] Group 1 - Enhanced Model Competitiveness: Xpeng Motors has shown continuous improvement in its new and updated models over the past two quarters, with the Mona M03 and P7+ ranking in the top three in their respective segments. This ongoing improvement boosts confidence in Xpeng's sales, not only for existing models but also for strong new models and updates expected to launch in the remainder of 2025, including G7/P7 (Q3) and its first extended-range electric vehicle (EREV) (Q4) [2] - Accelerated New Model Launches: Xpeng Motors has increased the frequency of new model releases, planning to launch 10 new models and updates annually, compared to just 1-2 models per year from 2019 to 2023. This strategy aims to enhance brand visibility throughout the year and provide opportunities for old model sales, thereby extending the sales growth cycle for all models [3] - Cost Reduction Effects: In early 2023, Xpeng Motors implemented a cost reduction plan aimed at lowering the overall bill of materials (BOM) costs by 25%, including a 50% reduction in advanced driver assistance systems (ADAS) BOM costs. The P7+ (launching in Q4 2024) will be the first model to realize total cost reductions, followed by the 2025 versions of G6 and G9 (launching in March). For instance, the cost reduction for the G6 is projected to improve gross margin by 7 percentage points and enhance gross profit by 156%. All new models will benefit from BOM cost reductions, laying the foundation for further improvements in gross margin and overall profitability [4]
高盛：予小鹏汽车-W(09868)94港元目标价 升评级至“买入”