© Reuters. 3 Analysts Discuss EV Maker XPeng (XPEV) Shares After Fourth Quarter Results
Xpeng Inc. (NYSE:) released fourth quarter results yesterday.
The company recorded a loss per share of 76 RMB in the fourth quarter, compared to a loss per share of 53 RMB in the year-ago quarter. Fourth-quarter revenue was 8.56 billion yuan, beating consensus estimates of 8.12 billion yuan. Net loss during the period was 1.29 billion yuan.
The Chinese electric vehicle maker reported 41,751 vehicle deliveries in the fourth quarter, above the consensus projection of 40,922.
Gross margin was 12% for the period, slightly below analysts’ expectations of 12.6%.
For the first quarter, Xpeng (NYSE:) expects revenue in the range of 7.2 billion yuan to 7.3 billion yuan, missing consensus estimates of 7.59 billion yuan. The company expects vehicle deliveries in the range of 33,500 to 34,000 units, below consensus of 38,310.
Fueled by our strong vehicle models in the market, planned new launches based on new platforms and our technology leadership, we are confident in our continued growth trajectory and structural improvement in our gross margin.
Three Wall Street analysts reflected on the company and XPEV shares after earnings.
Nick Lai (overweight, $42) from JPMorgan (NYSE:): “XPeng’s 4Q21 result today was mixed. operating expenses lower than expected Management’s tone on the analyst call was cautiously optimistic given the company’s recent price hikes (to mitigate rising input costs) and new model launches this year. supply constraint, new capacity and new model.”
Citis Jeff Chung (Buy, $92): “Our positive view of its business outlook is based on: 1) our expectation that the company will gain market share in the BEV space, given its superior NEDC lineup compared to its peers, its leading autonomous driving technology and its faster pace of product launch (enabled by its two flexible EV platforms and two-pronged manufacturing approach); 2) the expectation of strong volume growth translating to greater economies of scale; and 3) all with material reduction in battery cost and margin growth The company is also expected to benefit from the recently launched NEV grant by China.”
BofAs Ming Hsun Lee (Buy, $50 instead of $61): “Given the price increase, we are reducing 2022E sales by 2% and lowering the EV/sales target to 5.5x (instead of of 6.6x, in line with XPengs historical average) Our new PO is $50/HKD 194 (down from $61/HKD 236). We reiterate the buy on XPeng given its pipeline robust models and its leading capacity in AD to gain share in China’s electric vehicle industry.”
By Senad Karaahmetovic
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