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G Sachs: XPENG-W (09868.HK) New Model & Tech Monetization Can Offset Cost Pressure; Rating Kept at Buy w/ TP $85
2026-03-24 10:36:59
XPENG-W (09868.HK)'s 4Q25 results were higher than expectations, and its 1Q26 revenue and gross margin guidance were also better than Goldman Sachs' prior forecasts, Goldman Sachs published a research report saying.

Although weak industry demand led to a decline in 1Q26 sales, the Company planned to launch 11 new models this year. Additionally, the recent launch of VLA2.0 increased store traffic and improved the conversion rate of Ultra/Ultra SE models.

The broker forecasted a 30% growth in revenue for 2026, with sales reaching 550,000 units, representing a 28% YoY growth.

XPENG-W continued to monetize its leadership in smart EV technology, with stable income contributions from Volkswagen on the G9 platform and electronic and electrical architecture, the report noted. Its self-developed Turing chip also started to generate revenue from Volkswagen this year.

The Company estimated 2026 gross margin to reach mid to high double-digit levels, primarily benefiting from economies of scale and higher contribution from high-margin businesses, offsetting cost hike pressures.

Therefore, Goldman Sachs raised its 2026-2028 earnings forecasts for XPENG-W, mainly due to higher revenue contribution from non-auto business, with rating kept at Buy. Based on discounted cash flow valuation, the broker set its target prices for XPENG-W's US stock/ H-shares at US$22/ $85.
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