DBS: Lowered XPeng's target price to HKD 40, lowered loss forecast for this year and next year

DBS released a rating report stating that XPeng's second-quarter revenue increased by 60% year-on-year to RMB 8.1 billion, while non-GAAP net loss narrowed by 54% year-on-year to RMB 1.2 billion, beating expectations. The bank expects that the new cars Mona M03 and P7+ will be launched at the end of August and in the fourth quarter, respectively, which will help boost sales in the second half of the year. It is estimated that the annual delivery volume will increase by 25% year-on-year to 180,000 vehicles. The bank pointed out that the company will increase the proportion of AI cars by 2025 and will support medium-term growth through the new XNGP AD autonomous driving system, with an average selling price of about RMB 200,000. The bank has lowered its loss forecast for the company for this year and next year by 11% and 10% respectively, with its target price reduced from HKD 47.3 to HKD 40, maintaining a "buy" rating