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.

Equity Bottom-Up

<ul><li>Maintain HOLD. We cut our FY24E net loss by RMB2.6bn to RMB6.7bn, as the 4Q23 GPM beat and the X9 may contribute a larger portion of sales.</li><li>On the other hand, Xpeng’s model pipeline in 2024 underscored our prior argument that the automaker has not found its brand proposition and comprehensive product mix.</li><li>We still see little signals for Xpeng to turn profitable in the foreseeable future, as it could be difficult for the automaker to achieve sizable sales and 15% GPM at the same time, 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.

Maintain HOLD. We cut our FY24E net loss by RMB2.6bn to RMB6.7bn, as the 4Q23 GPM beat and the X9 may contribute a larger portion of sales.On the other hand, Xpeng’s model pipeline in 2024 underscored our prior argument that the automaker has not found its brand proposition and comprehensive product mix.We still see little signals for Xpeng to turn profitable in the foreseeable future, as it could be difficult for the automaker to achieve sizable sales and 15% GPM at the same time, 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) - Margin Lift Mixed with Unexciting New Models

<ul><li>Maintain HOLD. We expect Xpeng’s 4Q23E vehicle GPM to turn positive.</li><li>However, such margin lift may not be enough to narrow its net loss significantly in FY24E.</li><li>Although we see possible share price recovery for automakers, Xpeng may lack positive catalysts, as its new models are scheduled in 2H24.</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.

Maintain HOLD. We expect Xpeng’s 4Q23E vehicle GPM to turn positive.However, such margin lift may not be enough to narrow its net loss significantly in FY24E.Although we see possible share price recovery for automakers, Xpeng may lack positive catalysts, as its new models are scheduled in 2H24.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 New Model Catalysts

<ul><li>Maintain HOLD. Although we see upside potential for Xpeng’s FY24E sales volume and revise it up to 0.26mn units, its low GPM could persist until 1H24E</li><li>. We believe the new-model effect from the G6 has been priced in and its current valuation is fair. Its smart-EV brand image could be challenged by Huawei.</li><li>3Q23 GPM miss. Xpeng’s 3Q23 revenue was 2% lower than we had projected. Even excluding the higher-than-expected inventory write-down for the G3i, GPM in 3Q23 was still worse than our prior forecast, partially reflecting the fierce competition that Xpeng faces.</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.

Maintain HOLD. Although we see upside potential for Xpeng’s FY24E sales volume and revise it up to 0.26mn units, its low GPM could persist until 1H24E. We believe the new-model effect from the G6 has been priced in and its current valuation is fair. Its smart-EV brand image could be challenged by Huawei.3Q23 GPM miss. Xpeng’s 3Q23 revenue was 2% lower than we had projected. Even excluding the higher-than-expected inventory write-down for the G3i, GPM in 3Q23 was still worse than our prior forecast, partially reflecting the fierce competition that Xpeng faces.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) – GPM Pressure Persists Despite Possible Sales Beat

<ul><li>Maintain HOLD. Although we revise up Xpeng’s FY24E sales volume forecast to 0.22mn units following the G6’s aggressive pricing, its low GPM could persist, especially with two new models next year likely to be priced below the G6.</li><li>We project single-digit GPM for FY24E and we believe its current valuation is fair.</li><li>2Q23 ASP and GPM miss. Xpeng’s 2Q23 revenue was 6% lower than we had expected, largely due to increased sales promotion, 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.

Maintain HOLD. Although we revise up Xpeng’s FY24E sales volume forecast to 0.22mn units following the G6’s aggressive pricing, its low GPM could persist, especially with two new models next year likely to be priced below the G6.We project single-digit GPM for FY24E and we believe its current valuation is fair.2Q23 ASP and GPM miss. Xpeng’s 2Q23 revenue was 6% lower than we had expected, largely due to increased sales promotion, 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) – 2Q23 GPM Miss; Still a Long Way for Healthy GPM

<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

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.