Investment Rating - The investment rating for the company is "Buy" with a target price of HKD 134.69, indicating a potential upside of 74.8% from the current price of HKD 77.05 [3][11]. Core Insights - The automotive gross margin exceeded expectations, with Q2 2025 revenue reaching RMB 18.27 billion, a quarter-on-quarter increase of 15.6%. Vehicle sales were 103,181 units, up 9.8% quarter-on-quarter. The average selling price (ASP) was RMB 164,000, reflecting a slight increase of RMB 1,100 [2][8]. - The company expects Q3 2025 revenue to be between RMB 19.6 billion and RMB 21 billion, with a median quarter-on-quarter growth of approximately 11.9%. The expected delivery volume is between 113,000 and 118,000 units, indicating a median quarter-on-quarter growth of about 11.1% [2][8]. - The company maintains its guidance for profitability in Q4 2025, supported by the launch of new models and improvements in vehicle structure [2][8]. Financial Overview - Revenue projections for the company are as follows: RMB 30.68 billion in 2023, RMB 40.87 billion in 2024, RMB 86.17 billion in 2025, RMB 113.34 billion in 2026, and RMB 125.49 billion in 2027, with significant growth rates expected [7][13]. - The company anticipates a net loss of RMB 10.38 billion in 2023, narrowing to RMB 5.79 billion in 2024, and expects to achieve a profit of RMB 1.5 billion by 2026 [7][13]. - The gross margin is projected to improve significantly, with expectations of 14.3% in 2025 and further increases in subsequent years [15]. Market Position and Future Outlook - The company is optimistic about the upcoming "Kunpeng Super Electric System" and the first range-extended/pure electric platform, which are expected to enter mass production in Q4 2025, contributing positively to gross margins [2][8]. - The introduction of the new generation P7 and the gradual rollout of self-developed Turing chips are expected to support short-term ASP and gross margin improvements [2][8]. - The company is positioned as a high-certainty investment among new energy vehicle manufacturers, with anticipated sales growth driven by the introduction of new models and advancements in autonomous driving technology [2][8].

Investment Rating - The report maintains a "Buy" rating for NIO Inc. (9866 HK) [6][7]. Core Views - The pricing strategy for the new L90 model is aggressive, with the top configuration priced under 300,000 RMB, which is expected to significantly boost sales [1]. - The successful launch of the L90 is anticipated to pave the way for the upcoming L80 model, aiding NIO in reversing its sales trajectory [1]. - The report highlights that despite a 50% rebound from lower price levels, NIO's 2025 price-to-sales ratio remains at 0.85 times, which is lower than peers valued at 1-2 times, indicating potential for further price recovery [1]. Summary by Relevant Sections Pricing Strategy - The L90 model's starting price is set at 265,800 RMB for the Pro version, with Max and Ultra versions priced at 279,800 RMB and 299,800 RMB respectively. The seven-seat variant starts at 271,800 RMB [1]. - The Battery as a Service (BaaS) pricing starts at 179,800 RMB for the Pro version, with Max and Ultra versions priced at 193,800 RMB and 213,800 RMB respectively [1][2]. Product Features - All versions of the L90 come standard with an 85 kWh battery, L2 level intelligent driving assistance, and Orin-X chip [1]. - The Ultra version features dual-motor all-wheel drive, a 0-100 km/h acceleration time of 4.7 seconds, and unique seating configurations for enhanced comfort [2]. Sales Expectations - The report anticipates that monthly sales will exceed the market expectation of 5,000 units due to the favorable pricing and product features [1]. - The management's commitment to aggressive pricing reflects a strategic move to regain market share and improve sales performance [1].

Investment Rating - The report maintains a "Buy" rating for NIO Inc. (9866 HK) with a target price of 48.96, indicating a potential upside of 77.4% from the closing price of 27.60 as of March 24, 2025 [4][5]. Core Insights - The launch of the NIO sub-brand's second model, the L90, has exceeded expectations with a starting price of 279,900 RMB, which can be as low as 190,900 RMB with battery-as-a-service (BaaS) options, making it highly competitive in the large electric SUV market [1][2]. - The L90 features exceptional space design with a length of 5,145 mm and a wheelbase of 3,110 mm, offering spacious seating configurations and significant storage capacity, addressing consumer demand for "large space + high cost performance" [2][3]. - The vehicle is equipped with advanced technology and safety features, including a 17.2-inch central control screen, a 17.3-inch rear entertainment screen, and a robust safety structure, positioning it as a strong competitor in the family SUV segment [2][3]. Summary by Sections Product Launch - The L90 is positioned as a family-oriented large electric SUV with a competitive pricing strategy, aiming to disrupt the market by offering superior space and features compared to similar models [1][2]. Technical Specifications - The L90 boasts a lightweight design, with the single-motor version weighing only 2.25 tons, and a dual-motor version at 2.36 tons, which is nearly 200 kg lighter than comparable gasoline vehicles, enhancing efficiency and range [2][3]. Market Strategy - NIO's strategy includes a focus on intelligent and safety features, utilizing a unique competitive approach that emphasizes technology and pricing to capture market share in the family SUV sector [2][3].

Investment Rating - The report maintains a "Buy" rating for XPeng Motors (9868 HK) with a target price of HKD 134.69, indicating a potential upside of 82.1% from the current price of HKD 73.95 [9][11]. Core Insights - The launch of the XPeng G7 on July 3, 2025, features three models with prices ranging from RMB 195,800 to RMB 225,800, showcasing a significant price reduction of RMB 40,000 from the pre-launch price [3]. - The XPeng G7 is positioned as a competitive option in the mid-to-high-end pure electric SUV market, emphasizing value for money, comfort, and advanced technology [3]. - The report highlights the G7's superior space and intelligent features compared to competitors like the Xiaomi YU7 and Tesla Model Y, with a focus on its AI capabilities and overall driving experience [3][4]. Summary by Sections Product Launch - The XPeng G7 was officially launched with three variants priced between RMB 195,800 and RMB 225,800, with the 702 km range version prioritized for delivery [3]. - The pricing strategy reflects a competitive edge against similar models in the market, particularly against the Xiaomi YU7 and Tesla Model Y [3]. Competitive Analysis - The G7's pricing is significantly lower than that of the Tesla Model Y (RMB 263,500 to RMB 313,500) and Xiaomi YU7 (RMB 223,500 to RMB 329,900), enhancing its attractiveness in the market [3][4]. - In terms of specifications, the G7 offers a larger body size and superior intelligent features, including three self-developed AI chips with a total computing power exceeding 2200 TOPS [3][4]. Performance and Technology - The G7 features a single rear motor with a maximum power of 218 kW, a top speed of 202 km/h, and a battery capacity of 80.8 kWh, achieving a CLTC range of 702 km [3]. - The vehicle supports 800V fast charging, allowing a charge from 10% to 80% in just 18 minutes, enhancing its long-distance travel convenience [3]. Market Outlook - XPeng Motors has delivered over 197,000 vehicles in the first half of 2025, representing a year-on-year growth of 279%, achieving 56% of its annual target [3]. - The report anticipates continued sales growth with the introduction of new models and the upcoming launch of the XPeng Kunpeng hybrid model in Q4 2025 [3].

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of HKD 134.69, indicating a potential upside of 64.7% from the current price of HKD 81.80 [4][5]. Core Insights - The company has launched the new G7 model, which features the Turing AI chip, achieving over 2200 TOPS of effective computing power, significantly surpassing the industry standard of 80-700 TOPS [1]. - The G7 is positioned as a family SUV with a pre-sale price of RMB 235,800 and is expected to be delivered in Q3 2025, targeting the electric SUV market [1]. - The G7's advanced features include a local deployment of VLA+VLM models for enhanced intelligent driving capabilities and a partnership with Huawei for an AR-HUD system, improving the driving experience [1]. - The company has seen a substantial increase in sales, with a 293% year-on-year growth in new car deliveries, totaling 162,578 units in the first five months of the year [1]. Summary by Sections Product Launch - The G7 model is the first to feature the Turing AI chip, enhancing its intelligent driving capabilities with L3 level computing power [1]. - The vehicle includes a maximum power output of 296 horsepower and a range of 702 km, catering to the needs of tech-savvy families [1]. Market Positioning - The G7 fills a market gap between the G6 and G9 models, targeting young users and families who prioritize technology and comfort [1]. - The competitive landscape includes models such as Tesla Model Y and others, indicating a strong market presence upon launch [1]. Sales Performance - The company has achieved a significant milestone with monthly sales exceeding 30,000 units for seven consecutive months, indicating robust demand for its vehicles [1]. - The report anticipates continued growth in sales, average selling price (ASP), and gross margin with the introduction of new and updated models [1].

Investment Rating - The report maintains a "Buy" rating for the company, Xiaopeng Motors (9868 HK), with a target price of HKD 134.69, indicating a potential upside of 38.2% from the current price of HKD 97.45 [1][2][8]. Core Insights - The company is expected to benefit from the widespread adoption of intelligent driving technology, with a strong product lineup set to drive sales growth. The upcoming launch of the 2025 models G6 and G9 is anticipated to significantly enhance product capabilities and attract new orders [7]. - Xiaopeng Motors is projected to achieve a 133% year-on-year increase in sales in 2025, reaching 440,000 units, driven by a robust new vehicle cycle and competitive pricing strategies [7]. - The financial outlook has been revised upwards, with a 30.4% increase in the 2025 sales forecast, reflecting strong demand and improved profitability as new models are introduced [7]. Financial Overview - Revenue is expected to grow from RMB 26,855 million in 2022 to RMB 85,431 million in 2025, representing a compound annual growth rate (CAGR) of approximately 56.5% [6][11]. - Net profit is projected to improve from a loss of RMB 10,376 million in 2023 to a loss of RMB 630 million in 2025, with a return to profitability expected in 2026 with a net profit of RMB 1,431 million [6][11]. - The company’s gross margin is anticipated to increase from 11.5% in 2022 to 13.5% in 2025, reflecting improved operational efficiency and cost management [12].