China Specialist, Auto and Industrial Specialist

Victoria Li

Equity Bottom-Up

<ul>
<li>Xpeng has announced it is speeding up its new model launch pipeline by launching 5 new models this year</li>
<li>If all go to plan, Xpeng's sales may hit 30k vehicles/month end of '23 or early '24</li>
<li>The appointment of new President from ICE sector may lead to some market confusion on management and branding in the short term</li>
</ul>


Xpeng has announced it is speeding up its new model launch pipeline by launching 5 new models this year
If all go to plan, Xpeng's sales may hit 30k vehicles/month end of '23 or early '24
The appointment of new President from ICE sector may lead to some market confusion on management and branding in the short term


Xpeng: Accelerated Model Launch Campaign May Surprise

China/Asia TMT

Shawn Yang

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Thematic (Sector/Industry)

<ul>
<li>CPCA reported China’s 2022 EV sales of 6.49mn units, + 96.1% YoY, primarily driven by better market acceptance of EVs and favourable EV policies. </li>
<li>We think the fiercer competition will lead to divergence, which is already proven by Tesla’s price war. The followers such as Xpeng, could only be price takers and sacrifice margin.</li>
<li>We reiterate Li Auto as our top pick, as 1) better profitability; 2) positive growth outlook in 2023. We cut NIO’s TP to US$ 18.</li>
</ul>


CPCA reported China’s 2022 EV sales of 6.49mn units, + 96.1% YoY, primarily driven by better market acceptance of EVs and favourable EV policies. 
We think the fiercer competition will lead to divergence, which is already proven by Tesla’s price war. The followers such as Xpeng, could only be price takers and sacrifice margin.
We reiterate Li Auto as our top pick, as 1) better profitability; 2) positive growth outlook in 2023. We cut NIO’s TP to US$ 18.


China EV Outlook: 2023 Will Be a Year of Divergence

<ul>
<li>Xpeng announced price cuts on existing G3i, P5 and P7, which surprised the market on negative side, potentially indicating weaker demand and profitability</li>
<li>Recent management changes has also hurt sentiment with the new CEO from a 'traditional' car background</li>
<li>Xpeng's share price has bottomed in our view and we expect a 2H'23 recovery with improving fundamentals</li>
</ul>


Xpeng announced price cuts on existing G3i, P5 and P7, which surprised the market on negative side, potentially indicating weaker demand and profitability
Recent management changes has also hurt sentiment with the new CEO from a 'traditional' car background
Xpeng's share price has bottomed in our view and we expect a 2H'23 recovery with improving fundamentals


Xpeng: Surprise Price Cut Weighs on Sentiment, but Share Price Likely Bottomed

Articles from Caixin Global, Caixin Global

Caixin Global

Articles from Caixin Global

Caixin is a media group dedicated to providing financial and business news through periodicals, online content, mobile apps, conferences, books and TV/video programs. Caixin aims to blaze a trail that helps traditional media prosper in the new media age through integrated multimedia platforms.

News from Caixin

Cross Asset Strategy

<ul><li>Lithium / In Depth: Lithium tops out.  </li><li>Davos / ‘China’s door to the outside will only open wider,’ Vice Premier Liu He says. </li><li>FDI / Charts of the Day: China’s FDI growth slowed but ‘steady’ in 2022. </li></ul>

Lithium / In Depth: Lithium tops out.  Davos / ‘China’s door to the outside will only open wider,’ Vice Premier Liu He says. FDI / Charts of the Day: China’s FDI growth slowed but ‘steady’ in 2022. 

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/lg-energy-solution" target="_blank" data-smartkarma-citation="entities:33464:1" rel="noopener">LG Energy Solution (373220 KS)</a> (LGES) raised US$10.8bn in its South Korea IPO, after pricing at the top-end of the IPO price range.</li>
<li>The stock was listed on 27th Jan 22. Its one-year lockup is set to expire soon.</li>
<li>In this note, we will talk about the lock-up dynamics and updates since our last note</li>
</ul>



LG Energy Solution (373220 KS) (LGES) raised US$10.8bn in its South Korea IPO, after pricing at the top-end of the IPO price range.
The stock was listed on 27th Jan 22. Its one-year lockup is set to expire soon.
In this note, we will talk about the lock-up dynamics and updates since our last note


LG Energy IPO Lock-Up - Last of the Lockups at US$3bn

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)

Xpeng: Accelerated Model Launch Campaign May Surprise

Xpeng has announced it is speeding up its new model launch pipeline by launching 5 new models this year.If all go to plan, Xpeng's sales may hit...

Victoria Li

China EV Outlook: 2023 Will Be a Year of Divergence

We think the fiercer competition in 2023 will inevitably lead to divergence. The followers such as Xpeng, could only sacrifice margin. We reiterate...

Blue Lotus Research Institute

CX Daily: Lithium Tops Out

In Depth: Lithium tops out. ‘China’s door to the outside will only open wider,’ Vice Premier Liu He says. Charts of the Day: China’s FDI growth...

Caixin Global

LG Energy IPO Lock-Up - Last of the Lockups at US$3bn

LG Energy Solution (373220 KS) raised US$10.8bn in its South Korea IPO, after pricing at the top-end of the IPO price range. Its one-year lockup...

Sumeet Singh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Xpeng: Accelerated Model Launch Campaign May Surprise

Xpeng has announced it is speeding up its new model launch pipeline by launching 5 new models this year.If all go to plan, Xpeng's sales may hit...

Victoria Li

China EV Outlook: 2023 Will Be a Year of Divergence

We think the fiercer competition in 2023 will inevitably lead to divergence. The followers such as Xpeng, could only sacrifice margin. We reiterate...

Blue Lotus Research Institute

Xpeng: Surprise Price Cut Weighs on Sentiment, but Share Price Likely Bottomed

Xpeng announced price cuts on existing G3i, P5 and P7, which surprised the market on negative side, potentially indicating weaker demand and...

Victoria Li

CX Daily: Lithium Tops Out

In Depth: Lithium tops out. ‘China’s door to the outside will only open wider,’ Vice Premier Liu He says. Charts of the Day: China’s FDI growth...

Caixin Global

LG Energy IPO Lock-Up - Last of the Lockups at US$3bn

LG Energy Solution (373220 KS) raised US$10.8bn in its South Korea IPO, after pricing at the top-end of the IPO price range. Its one-year lockup...

Sumeet Singh