Investment Rating - The report assigns an investment rating of "Outperform the Market" for the automotive industry, indicating a positive outlook compared to the relevant market index [5]. Core Insights - The report highlights that Xiaopeng Motors reported a narrowing net loss of 380 million yuan in Q3 2025, with a gross margin exceeding 20%. The company anticipates Q4 2025 vehicle deliveries to be approximately 125,000 to 132,000 units, representing a year-on-year growth of about 36.6% to 44.3% [2]. - Xiaopeng's total revenue for Q3 2025 reached 20.38 billion yuan, with a year-on-year increase of 101.8%. The automotive sales revenue was 18.05 billion yuan, up 105.3% year-on-year [2]. - The report emphasizes the strong growth in vehicle deliveries, with Q3 2025 deliveries reaching 116,007 units, a year-on-year increase of 149.3% [2]. - The company is focusing on dual-energy products and plans to launch several long-range extended-range models in 2026, aiming to capture the traditional fuel vehicle market in northern and inland cities [2]. - Xiaopeng is advancing its technology strategy centered on physical AI, with plans for significant upgrades in smart driving capabilities and the introduction of Robotaxi models by 2026 [2]. Summary by Sections Financial Performance - Xiaopeng's Q3 2025 total revenue was 20.38 billion yuan, with a gross margin of 20.1%, reflecting a year-on-year increase of 4.8 percentage points. The net loss narrowed to 380 million yuan, showcasing improved cost control [2]. Market Expansion - The company reported a strong increase in overseas deliveries, surpassing 5,000 units in September 2025, with a year-on-year growth of 79%. The global sales network now covers 52 countries and regions [2]. Technological Development - Xiaopeng is focusing on the development of its self-researched Turing AI chip and plans to launch the VLA 2.0 model in Q1 2026, which is expected to enhance the smart driving experience significantly [2].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of US$28.00, indicating a potential upside of 37% from the current stock price of US$20.37 [4][10]. Core Insights - The company's automotive sales gross margin significantly improved to a historical high of 14.3% in Q2 2025, driven by the launch of new models such as G6 and G9, leading to a substantial revenue increase of 147.6% year-on-year [1][4]. - The management anticipates that the new P7 and X9 models will further boost sales, with pre-sale orders for the new P7 reaching record levels [2][4]. - The company is focusing on solidifying its leadership in intelligent driving and plans to initiate Robotaxi operations in 2026, leveraging its advanced algorithms and effective computing power [3][4]. Financial Performance Summary - In Q2 2025, the company reported automotive sales revenue of RMB 168.8 billion, with a gross profit of RMB 31.7 billion, reflecting a year-on-year growth of 178.9% [1][4]. - The forecast for 2025 includes total revenue of RMB 79.623 billion, with an expected gross margin of 17.6% [12][14]. - The projected delivery volume for 2025 is approximately 451,123 vehicles, with a gradual increase expected in subsequent years [12][20]. Financial Data Overview - The company is expected to achieve a Non-GAAP net loss of RMB 813 million in 2025, improving to a profit of RMB 2.327 billion by 2026 [12][13]. - The earnings per share (EPS) forecast for 2025 is projected at RMB -0.85, with a turnaround to RMB 2.41 in 2026 [7][12]. - The financial outlook indicates a steady increase in revenue and profitability, with significant improvements in gross margins and operational efficiency anticipated [12][14].