XPENG(XPEV) 光大证券·2024-05-28 07:02Investment Rating - The investment rating for the company is "Buy" (maintained) [1][2] Core Views - The company reported better-than-expected revenue and gross margin performance in Q1 2024, with revenue increasing by 62.3% year-on-year to 6.55 billion RMB, surpassing the expected 5.02 billion RMB. The gross margin improved by 11.2 percentage points year-on-year to 12.9% [1] - The company is expected to transition smoothly in Q2 2024, with a new model cycle beginning in Q3 2024, including the launch of the new Mona brand and a B-class electric vehicle [2] - The collaboration with Volkswagen is anticipated to provide long-term benefits, with expectations of increased revenue and gross margin due to the deepening partnership [2] Summary by Sections Q1 2024 Performance - Revenue for Q1 2024 was 6.55 billion RMB, a year-on-year increase of 62.3% and a quarter-on-quarter decrease of 49.8%. The gross margin was 12.9%, up 11.2 percentage points year-on-year and 6.7 percentage points quarter-on-quarter [1] - Non-GAAP net loss narrowed by 36.3% year-on-year to 1.41 billion RMB, better than the expected loss of approximately 1.47 billion RMB [1] Automotive Revenue and Margins - Automotive revenue in Q1 2024 was 5.54 billion RMB, a year-on-year increase of 57.8% and a quarter-on-quarter decrease of 54.7%. The average selling price (ASP) increased by 31.8% quarter-on-quarter to 254,000 RMB [1] - The gross margin for automotive business improved to 5.5%, up 8.0 percentage points year-on-year [1] Service and Other Income - Service and other income in Q1 2024 was 1 billion RMB, with a gross margin of 53.9%, benefiting from new revenue from the Volkswagen partnership [1] Cost Management - R&D expense ratio decreased by 11.5 percentage points year-on-year to 20.6%, while SG&A expense ratio decreased by 13.2 percentage points year-on-year to 21.2% [1] Future Outlook - The company is expected to launch new models in Q3 and Q4 2024, which will cover key market segments priced between 100,000 to 400,000 RMB [2] - The management anticipates a strong model cycle starting in Q3 2024, with a focus on pricing, supply chain, and order delivery sustainability [2] - The target price has been adjusted to US$10.0, reflecting a valuation of approximately 1.3x 2024E P/S [2]