Core Viewpoint - The company reported a strong Q1 performance with revenue of 15.8 billion yuan, a year-on-year increase of 141%, and a narrowing net loss of 660 million yuan, aligning with expectations [1][2] Financial Performance - Q1 gross margin reached a record high of 15.6%, with significant cost reduction and efficiency improvements [1][2] - The company sold 94,000 new vehicles in Q1, a year-on-year increase of 331%, contributing to the highest quarterly revenue [1][2] - The average selling price (ASP) and gross profit per vehicle were 15,300 yuan and 1,600 yuan, respectively, showing a year-on-year decrease of 40% and an increase of 15% [2] Sales and Delivery Outlook - The company has delivered over 30,000 vehicles for six consecutive months, with April deliveries reaching 35,000 units [3] - The company plans to launch three new models from May to August, which are expected to significantly boost sales [3] - The company anticipates Q2 deliveries of 102,000 to 108,000 vehicles, setting a new delivery guidance record [2] Market Expansion and Growth Potential - The company has exported 11,000 vehicles from January to April, a year-on-year increase of 330%, with exports accounting for 9% of total sales [3] - The company is pursuing multiple growth avenues, including a range-extended SUV and flying cars, indicating a positive long-term growth outlook [3] Profit Forecast and Valuation - The company maintains revenue forecasts of 85.6 billion, 97.7 billion, and 124.7 billion yuan for 2025-2027 [3] - The target price has been raised to 119.99 HKD, maintaining a "buy" rating based on the company's new vehicle cycle and technological advantages [3]

Investment Rating - The report maintains a "Buy" rating for the company [7] Core Views - The company reported Q1 revenue of 15.8 billion RMB, with a year-on-year increase of 141% and a slight quarter-on-quarter decrease of 2%. The net profit attributable to the parent company was a loss of 660 million RMB, which is a narrowing of losses compared to the previous quarter, aligning with expectations [1] - The company is expected to continue benefiting from the sales of new models such as M03 MAX and G7, with projected monthly sales exceeding 40,000 units in July and August due to scale effects improving profitability [1][3] - The gross margin for Q1 2025 reached a record high of 15.6%, with a significant year-on-year increase of 2.7 percentage points. The automotive gross margin was 10.5%, reflecting a 5.0 percentage point increase year-on-year [2] - The company plans to deliver between 102,000 to 108,000 vehicles in Q2 2025, setting a new delivery guidance record [2] - The company has accelerated its overseas market expansion, with cumulative exports of 11,000 units from January to April, representing a year-on-year increase of 330% [4] Summary by Sections Financial Performance - Q1 2025 revenue was 15.8 billion RMB, with a year-on-year increase of 141% and a quarter-on-quarter decrease of 2%. The net loss attributable to the parent company was 660 million RMB, a reduction from previous losses [1] - The company expects to achieve revenues of 85.6 billion RMB, 97.7 billion RMB, and 124.7 billion RMB for the years 2025, 2026, and 2027 respectively [6][18] Gross Margin and Cost Management - The gross margin for Q1 2025 was 15.6%, a record high, with the automotive gross margin at 10.5%, both showing significant improvements [2] - The company has effectively controlled SG&A and R&D expenses, with rates of 12% and 13% respectively, showing year-on-year decreases [2] Sales and New Models - The company sold 94,000 new vehicles in Q1 2025, a year-on-year increase of 331% [2] - The upcoming launches of three new models are expected to replicate the success of previous models, potentially boosting sales significantly [3] Market Expansion - The company is focusing on expanding its overseas market presence, with expectations of doubling overseas sales for the year [4] - The company is also exploring multiple growth avenues, including range-extended SUVs and flying cars [4] Valuation and Price Target - The target price for the company has been raised to 119.99 HKD, reflecting an increase from the previous target of 105.27 HKD [5][12]

Group 1 - The Hong Kong stock market opened lower on May 22, with the Hang Seng Index down 0.33% at 23,748.58 points, the Hang Seng Tech Index down 0.11%, and the National Enterprises Index down 0.23% [1] - Technology stocks in Hong Kong experienced a general decline, while gold stocks rose collectively. Automotive stocks were active, with XPeng Motors surging after its earnings report [1] - XPeng Motors reported Q1 2025 revenue of 15.81 billion yuan, a year-on-year increase of 141.5%. The total delivery volume reached 94,000 units, marking a historical high for quarterly deliveries with a year-on-year growth of 330.8% [1] Group 2 - XPeng Motors achieved a gross margin of 15.6%, an increase of 2.7 percentage points year-on-year, setting a new record for quarterly gross margin. The automotive gross margin reached 10.5%, up 5 percentage points year-on-year, marking seven consecutive quarters of growth [1] - Huatai Securities noted that since the launch of the MONAM03, the company's sales trend has been consistently positive, with April deliveries reaching 35,000 units, surpassing 30,000 units for six consecutive months [1] - The company plans to launch three new models from May to August: M03MAX, P7 facelift, and G7, which are expected to replicate the success of the M03 and P7 models, potentially driving monthly sales to exceed 40,000 units in July and August [1] Group 3 - The Hong Kong Stock Connect Automotive ETF (159323) focuses on the Hong Kong vehicle sector, featuring a high concentration of passenger vehicles and including emerging automakers like XPeng Motors, BYD, Li Auto, and Geely [2] - The ETF also covers the automotive parts sector and the automotive intelligence field, positioning it to benefit significantly from the robotics technology wave [2]