[Brokerage Focus] China Merchants Securities International maintains the "overweight" rating of XPeng Motor (09868), indicating that positive signals of its fundamentals appear

China Merchants SecuritiesAccording to the International Development Research Report, DecemberXPeng vehicles(09868) delivered 11,000 vehicles, a year-on-year decrease of 29.4% and a month-on-month increase of 94.3%. The monthly delivery volume returned to more than 10,000 units. The bank lowered the company's 2022-24 sales forecast by 5%/8%/0%, and lowered its revenue forecast by 7%/8%/0%, reflecting more conservative expectations for the company's sales during the adjustment period and intensified market competition. Maintain the target price of HK $50 for Hong Kong stocks/US $13 for US stocks, which is equivalent to 1.6 times the price-to-sales ratio in 2023 (1.5 times the previous time), and the 8% increase in the valuation multiple reflects a positive signal of the company's fundamentals. Maintain an "overweight" rating.

The bank continued to point out that after the company announced the adjustment of its management structure at the end of October, the bank is still continuing to observe changes in execution. At present, there are positive signals from the fundamentals: 1) After the G9 product was launched, the company corrected errors in time, and the sales volume rose open low. In line with the bank's previous judgment of "slow-heating models". The fast charging and battery life formed by the 800V architecture have been recognized by the market. With the rollout of the charging network, the G9's terminal reputation is picking up, laying the foundation for further improvement in delivery volume. 2) In the past, the company focused on technology research and development, and there were shortcomings in after-sales service. The company has improved its after-sales service and its execution is improving. The company plans to launch offline care service activities at popular supercharging stations in 20 cities with high traffic across the country during the Spring Festival travel period from January 10th to 28th, providing free vehicle inspection and catering services. Car owners can receive epidemic prevention packages, Pengyou Exclusive New Year gifts, charging discounts and many other benefits, XPeng energy storage vehicle pilot provides emergency energy replenishment for users.