On November 15th, Xiaopeng Automobile released its financial report for the third quarter of 2023. According to the financial report, Xiaopeng Automobile's Q3 revenue exceeded 8.5 billion yuan, a year-on-year increase of 25.0% and a month on month increase of 68.5%. However, profitability has not yet been achieved. In the third quarter, Xiaopeng suffered an operating loss of 3.16 billion yuan, an increase of approximately 1 billion yuan year-on-year.
Still in a state of loss
Overall, the data of Xiaopeng Automobile has significantly improved. In terms of delivery performance, the total delivery volume of Xiaopeng Automobile in the third quarter was 40008 units, reaching the milestone of 40000 units delivered in a single quarter, an increase of 72.4% month on month. With significant growth in delivery volume and revenue, as well as cost reduction in scale, Xiaopeng Automobile's cash reserves have reached nearly 36.5 billion yuan, an increase of 2.74 billion yuan compared to the previous quarter.
Based on strong product sales expectations, Xiaopeng Automobile has raised its fourth quarter performance guidance, with an expected delivery volume of 59500 to 63500 units, a year-on-year increase of approximately 101.2% to 114.7%, and an expected total revenue of 12.7 billion to 13.6 billion yuan, a year-on-year increase of approximately 86.1% to 99.3%.
Xiaopeng Automobile's revenue increased significantly in the third quarter compared to the previous quarter, thanks to the increase in the delivery volume of the full product matrix with G6 as the main model. Public data shows that in September of this year, the sales of Xiaopeng G6 single cars were 8132 units, accounting for a total contribution of 54% to that month's sales. In addition, the sales of the newly redesigned Xiaopeng G9 have also improved.
For the future, He Xiaopeng, Chairman and CEO of Xiaopeng Automobile, is expected to be optimistic. He believes that Xiaopeng Automobile will enter a weak positive cycle starting from the third quarter of this year, and from the third quarter to the third quarter of next year, Xiaopeng's positive cycle speed will accelerate.
Although both Xiaopeng Automobile's total revenue and automobile sales revenue are increasing, there has been no improvement in net profit and gross profit margin. Xiaopeng Automobile's gross profit margin in the third quarter was -2.7%, a decrease of 16.2% compared to the same period last year.
In terms of net profit, the net loss attributable to ordinary shareholders of Xiaopeng Automobile in the third quarter reached 3.89 billion yuan, an increase of 63.6% year-on-year and 38.6% month on month. Industry competition is becoming increasingly fierce (small label)
At present, more and more new car manufacturers are expanding their product lines, such as Nezha and Zero Run, which have successively launched high-end models. Ideal Automobile has successively launched models such as Ideal L8, Ideal L9, and Ideal L7. NIO plans to launch another best-selling brand and enter the 200000 to 300000 yuan market.
Assisted intelligent driving, as the "master's skill" of Xiaopeng Automobile, is of great importance to Xiaopeng Automobile. It is reported that Xiaopeng Automobile has been focusing on intelligent driving assistance since its inception. Its CNGP urban navigation assistance has been opened in five cities: Beijing, Shanghai, Guangzhou, Shenzhen, and Foshan. It is expected that an additional 25 cities will be added by the end of November to support urban intelligent driving, and by the end of December, it will reach 50 cities. By 2024, XNGP will cover the road network of major cities in China, and NGP will be ready to go global.
Huawei Wenjie Automobile is undoubtedly Xiaopeng Automobile's biggest competitor. At present, Huawei ADS2.0 advanced intelligent driving system has been installed on the Wenjie M5 intelligent driving version. After opening the urban NCA in five cities including Shanghai, Shenzhen, Guangzhou, Hangzhou, and Chongqing, the urban NCA in Beijing was officially opened on August 18th.
The latest data shows that the Wenjie M5 series has delivered over 120000 vehicles in total, and has simultaneously launched surprising new benefits. The Wenjie New M7 series has only been launched for 50 days, with a cumulative booking volume of 86000 units; The pre order quantity of the technology car Huangwenjie M9, which has not been officially launched, has exceeded 25000.
Securities firms are optimistic about future development
Regarding the performance of Xiaopeng Automobile, Huatai Securities released a research report stating that Xiaopeng Automobile's sales have steadily increased, and the Q4 gross profit margin is expected to improve, maintaining the H-share "buy" rating.
Huatai Securities pointed out that Xiaopeng Automobile is expected to further improve its delivery and sales by integrating its direct distribution system, improving efficiency through flat management, and optimizing the supply chain system.
Ping An Securities Research Report believes that the mistakes made by G9 during the listing stage and the current difficulties faced by the company are not enough to affect the long-term investment value of Xiaopeng Automobile. Currently, the company has sufficient cash on hand and, as an important member of the new force in car manufacturing, still has great development potential.
Guolian Securities has given Xiaopeng Automobile a "buy" rating for the first time, with an expected sales volume (excluding the MONA brand) of 14.2/328/522000 units from 2023 to 2025, with a target price of HKD 113.3.
Guolian Securities believes that Xiaopeng Automobile has the ability to export all types of vehicles, and intelligence has become its brand influence label. The continuous improvement of the product matrix is expected to bring about a continuous increase in sales. In addition, the company has currently completed deep cooperation with high-quality enterprises such as Alibaba, Didi, and Volkswagen, and its intelligent driving and vehicle output capabilities have been recognized. The company is expected to lead the industry in the subsequent wave of intelligence.