Equity Analyst, LightStream Research

Aqila Ali

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Capital Markets

<a href="https://www.smartkarma.com/entities/guangzhou-xiaopeng-motors-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:29217:1" rel="noopener">Xpeng Motors (XPEV US)</a> released its prospectus last Friday. In our insight <a href="https://www.smartkarma.com/insights/xpeng-following-lixiang-s-ipo-plan" target="_blank" data-smartkarma-citation="insights:41747" rel="noopener">Xpeng: Following Lixiang’s IPO Plan</a>, we looked at Xpeng and its business and growth prospects in comparison to Lixiang, Tesla, and Nio. In this insight, we present our key takeaways from the prospectus with regard to Xpeng’s product, its growth profile, and compare the financials in comparison to Tesla, Nio, and Li Auto.
<div class="content-highlight">
Having looked at <a href="https://www.smartkarma.com/entities/nio-inc" target="_blank" data-smartkarma-citation="entities:27399:1" rel="noopener">NIO Inc (NIO US)</a>, <a href="https://www.smartkarma.com/entities/tesla-motors-inc" target="_blank" data-smartkarma-citation="entities:20279:1" rel="noopener">Tesla Motors (TSLA US)</a>, <a href="https://www.smartkarma.com/entities/li-auto-inc" target="_blank" data-smartkarma-citation="entities:28812:1" rel="noopener">Li Auto Inc. (LI US)</a>, and <a href="https://www.smartkarma.com/entities/wm-motor-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:29225:1" rel="noopener">WM Motor Technology Co Ltd (WMT CH),</a> we note that Xpeng’s business model and product development plan are better than Lixiang’s, but falls below WM.  In addition,  we consider relatively low delivery growth rates and consumer concerns regarding Xpeng’s products as red flags. Based on the current financial performance, we see no strong reasons to prefer Xpeng over Lixiang, Nio or Tesla. If Xpeng can prove to be independent in manufacturing and capture demand for its products, there is a chance that the company could improve its financial performance. However, for now, the idea seems risky. 
</div>
We go through the details below.

Xpeng Motors (XPEV US) released its prospectus last Friday. In our insight Xpeng: Following Lixiang’s IPO Plan, we looked at Xpeng and its business and growth prospects in comparison to Lixiang, Tesla, and Nio. In this insight, we present our key takeaways from the prospectus with regard to Xpeng’s product, its growth profile, and compare the financials in comparison to Tesla, Nio, and Li Auto.

Having looked at NIO Inc (NIO US), Tesla Motors (TSLA US), Li Auto Inc. (LI US), and WM Motor Technology Co Ltd (WMT CH), we note that Xpeng’s business model and product development plan are better than Lixiang’s, but falls below WM.  In addition,  we consider relatively low delivery growth rates and consumer concerns regarding Xpeng’s products as red flags. Based on the current financial performance, we see no strong reasons to prefer Xpeng over Lixiang, Nio or Tesla. If Xpeng can prove to be independent in manufacturing and capture demand for its products, there is a chance that the company could improve its financial performance. However, for now, the idea seems risky. 

We go through the details below.

Xpeng IPO (Financial Analysis): More Products Than Li, But Generates A Gross Loss and Wider Net Loss

WM Motor Technology Co Ltd / Equity Capital Markets

In this insight, we look at <a href="https://www.smartkarma.com/entities/wm-motor-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:29225:1" rel="noopener">WM Motor Technology Co Ltd (WMT CH)</a> (Weltmeister - WM), a Chinese EV start-up that is aiming for an IPO. WM wanted to go public since 2018 when it reported that it was open to an IPO in the U.S. In 2019, the company began preparing for an IPO by changing its shareholding structure. The latest news in July was that WM is looking to  IPO on Shanghai stock exchange and is reportedly working with financial advisers with the hope of listing during the course of this year.We note that the company is quite similar to <a href="https://www.smartkarma.com/entities/tesla-motors-inc" target="_blank" data-smartkarma-citation="entities:20279:1" rel="noopener">Tesla Motors (TSLA US)</a> in term<a target="_blank"></a>s of self-manufacturing, and like <a href="https://www.smartkarma.com/entities/guangzhou-xiaopeng-motors-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:29217:1" rel="noopener">Guangzhou Xiaopeng Motors Technology Co Ltd (1564038D CH)</a>, has an interesting business model (better than <a href="https://www.smartkarma.com/entities/li-auto-inc" target="_blank" data-smartkarma-citation="entities:28812:1" rel="noopener">Li Auto Inc. (LI US)</a>). We prefer both WM and Xpeng over Nio and Lixiang. For now, our preference is slightly tilted towards WM for its manufacturing capability and relatively strong sales momentum.We go through the details below.

In this insight, we look at WM Motor Technology Co Ltd (WMT CH) (Weltmeister - WM), a Chinese EV start-up that is aiming for an IPO. WM wanted to go public since 2018 when it reported that it was open to an IPO in the U.S. In 2019, the company began preparing for an IPO by changing its shareholding structure. The latest news in July was that WM is looking to  IPO on Shanghai stock exchange and is reportedly working with financial advisers with the hope of listing during the course of this year.We note that the company is quite similar to Tesla Motors (TSLA US) in terms of self-manufacturing, and like Guangzhou Xiaopeng Motors Technology Co Ltd (1564038D CH), has an interesting business model (better than Li Auto Inc. (LI US)). We prefer both WM and Xpeng over Nio and Lixiang. For now, our preference is slightly tilted towards WM for its manufacturing capability and relatively strong sales momentum.We go through the details below.

Weltmeister: Closely Competing With Xpeng

China

WM Motor Technology Co. Ltd. manufactures automobiles. The Company produces new energy vehicles, shared cars, motor vehicles, and other products. WM Motor Technology also operates automobile technology development, import and export, and other businesses.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

WM Motor Technology Co Ltd (WMT CH)

Xpeng IPO (Financial Analysis): More Products Than Li, But Generates A Gross Loss and Wider Net Loss

Xpeng Motors (XPEV US) released its prospectus last Friday. In our insight Xpeng: Following Lixiang’s IPO Plan, we looked at Xpeng and its business...

Aqila Ali

Weltmeister: Closely Competing With Xpeng

In this insight, we look at WM Motor Technology Co Ltd (WMT CH) (Weltmeister - WM), a Chinese EV start-up that is aiming for an IPO. WM wanted to...

Aqila Ali

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)