External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Thematic (Sector/Industry)

<ul><li>We summarize the Jun 2023 price discounts at dealers for major automakers in this report.</li><li>Note that such discounts for each automaker are calculated based on weighted average of May 2023 retail sales volume for each model, as Jun retail sales volume data have not been released yet.</li><li>Most automakers’ discounts widened MoM in Jun 2023 to rush for 1H23 targets and cut inventories, as we had expected. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We summarize the Jun 2023 price discounts at dealers for major automakers in this report.Note that such discounts for each automaker are calculated based on weighted average of May 2023 retail sales volume for each model, as Jun retail sales volume data have not been released yet.Most automakers’ discounts widened MoM in Jun 2023 to rush for 1H23 targets and cut inventories, as we had expected. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China Auto Sector – When will discounts peak after rising for 8 months

<ul>
<li>We summarize the Jun 2023 leading indicators as below, including number of leads, customer flows, and new orders generated, for Tesla, NIO, Li Auto, Xpeng, BYD and Aion.</li>
<li>Note that such data are based on a sample size of 96 stores (15- 18 stores for each brand) in 15 major cities in China.</li>
<li>We are of the view that Tesla is still resilient, while NIO’s key metrics in Jun were below our expectation.</li>
</ul>
Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.


We summarize the Jun 2023 leading indicators as below, including number of leads, customer flows, and new orders generated, for Tesla, NIO, Li Auto, Xpeng, BYD and Aion.
Note that such data are based on a sample size of 96 stores (15- 18 stores for each brand) in 15 major cities in China.
We are of the view that Tesla is still resilient, while NIO’s key metrics in Jun were below our expectation.

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China Auto Sector – Jun leading indicators: NIO weaker than expected

<ul><li>Nine new-energy vehicle (NEV) brands including BYD, NIO, Xpeng, Li Auto, Zeekr, Aion, Aito, Neta and Leap reported their May 2023 sales volumes on 1 Jun 2023.</li><li>Sales volume of the nine brands combined rose 88% YoY (ranged from -26% to +146%) and 13% MoM (ranged from -8% to 38%) in May 2023.</li><li>Li Auto’s May sales more than doubled NIO and Xpeng combined.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Nine new-energy vehicle (NEV) brands including BYD, NIO, Xpeng, Li Auto, Zeekr, Aion, Aito, Neta and Leap reported their May 2023 sales volumes on 1 Jun 2023.Sales volume of the nine brands combined rose 88% YoY (ranged from -26% to +146%) and 13% MoM (ranged from -8% to 38%) in May 2023.Li Auto’s May sales more than doubled NIO and Xpeng combined.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China Auto Sector – May NEV likely to hit second highest in history

Equity Bottom-Up

<ul><li>We downgrade Xpeng to HOLD from Buy, as we believe its lingering issues, such as product positioning and low margins may not be resolved this year.</li><li>We believe both G6 and the new MPV could miss management’s expectation given the competitive landscape and unclear positioning.</li><li>The failure of the upmarket move by the G9 could have much more severe dent on Xpeng in the long term, in our view. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We downgrade Xpeng to HOLD from Buy, as we believe its lingering issues, such as product positioning and low margins may not be resolved this year.We believe both G6 and the new MPV could miss management’s expectation given the competitive landscape and unclear positioning.The failure of the upmarket move by the G9 could have much more severe dent on Xpeng in the long term, in our view. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Xpeng Inc. (XPEV US) – Lack of turnaround signals in 2023

<ul><li>Both Xpeng’s revenue and net loss in 4Q22 missed our prior forecasts, largely due to more intensified competition than expected.</li><li>On the other hand, we expect its sales volume to rise sequentially every quarter in FY23E, based on our channel checks with its battery supplier and the rollouts of the G6 in 2Q23.</li><li>It appears to us that the automaker has started to prioritize cost optimization and customer needs after senior management changes. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Both Xpeng’s revenue and net loss in 4Q22 missed our prior forecasts, largely due to more intensified competition than expected.On the other hand, we expect its sales volume to rise sequentially every quarter in FY23E, based on our channel checks with its battery supplier and the rollouts of the G6 in 2Q23.It appears to us that the automaker has started to prioritize cost optimization and customer needs after senior management changes. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Xpeng Inc. (XPEV US) – 4Q22 earnings miss; sales may rise QoQ in FY23E

China

XPeng Inc. designs, produces, and distributes electric vehicles. The Company designs, develops, manufactures and markets smart smart electric vehicles, as well as finance, parts, and maintenance services. XPeng serves customers in China.

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XPeng (XPEV US)

China Auto Sector – When will discounts peak after rising for 8 months

Note that such discounts for each automaker are calculated based on weighted average of May 2023 retail sales volume for each model

CMB International

China Auto Sector – Jun leading indicators: NIO weaker than expected

We summarize the Jun 2023 leading indicators as below, including number of leads, customer flows, and new orders generated, for Tesla, NIO, Li...

CMB International

China Auto Sector – May NEV likely to hit second highest in history

Nine new-energy vehicle (NEV) brands including BYD, NIO, Xpeng, Li Auto, Zeekr, Aion, Aito, Neta and Leap reported their May 2023 sales volumes on...

CMB International

Xpeng Inc. (XPEV US) – Lack of turnaround signals in 2023

We downgrade Xpeng to HOLD from Buy, as we believe its lingering issues, such as product positioning and low margins may not be resolved this year.

CMB International

Xpeng Inc. (XPEV US) – 4Q22 earnings miss; sales may rise QoQ in FY23E

Both Xpeng’s revenue and net loss in 4Q22 missed our prior forecasts, largely due to more intensified competition than expected.

CMB International

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