UBS Initiates XPeng H-Shares at Neutral, HK$47 PT
UBS analyst Paul Gong initiates coverage on XPeng (H-Shares) (9868:HK) (NYSE: XPEV) with a Neutral rating and a price target of HK$47.
“XPeng is arguably one of the most active robot players among Chinese carmakers, and has successfully crystallised US$4.3bn of value through its robotics financing.
Yet its car business still face challenges from intense competition, supply chain and short shelf lives, which led to a weaker financial performance than the market expected.
We initiate coverage on XPeng-H with a Neutral rating and price target of HK$47, based on a SOTP valuation with 30% of the value derived from robots.
Through external investors, the robotics business is now valued at US$6.3bn and XPeng retains a 68.4% stake, crystallising US$4.3bn of value in the listed company.”
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