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

Blue Lotus China New Economy Research, Blue Lotus Research Institute

Eric Wen

Blue Lotus China New Economy Research

Equity Bottom-Up

<ul>
<li>XPeng reported C2Q25 top line, non-GAAP operating loss and GAAP net loss (5.4%), 28% wider and 10% narrower than our estimate and (2.2%), 13% narrower and 49% narrower than consensus. </li>
<li>Vehicle gross margin beat our estimate by 2.3ppt, consensus by 1.7ppt, and improved 14ppt YoY and 1.8% QoQ. XPEV guided for breakeven in C4Q25;</li>
<li>We reiterate our TOP BUY on XPEV with TP unchanged.</li>
</ul>


XPeng reported C2Q25 top line, non-GAAP operating loss and GAAP net loss (5.4%), 28% wider and 10% narrower than our estimate and (2.2%), 13% narrower and 49% narrower than consensus. 
Vehicle gross margin beat our estimate by 2.3ppt, consensus by 1.7ppt, and improved 14ppt YoY and 1.8% QoQ. XPEV guided for breakeven in C4Q25;
We reiterate our TOP BUY on XPEV with TP unchanged.


[XPeng Inc. (XPEV US, BUY, TP US$28) Review]: When Margin and Cash Is Right, Growth Is Secondary