XPeng is scheduled to report its second-quarter results on Monday. Here is what you need to know:
NET LOSS: The Chinese electric-vehicle maker's net loss is likely to have widened to 718.6 million yuan, equivalent to $106.9 million, according to a poll of analysts by Visible Alpha. It reported a 477.8 million yuan loss in the year-earlier period.
REVENUE: XPeng's second-quarter revenue likely rose 13% to 20.69 billion yuan, according to Visible Alpha. The EV maker delivered 103,295 units in the period.
The company's Hong Kong-listed shares fell 23% in the quarter, deepening losses amid subdued demand in China's auto market. The stock has shed about 40% year to date.
WHAT TO WATCH:
--MARGIN: Investors will closely monitor XPeng's vehicle gross margin, which Citi analysts estimated at 12.5% in the second quarter. The EV maker's vehicle margin was 12.1% in the first quarter and 14.3% in the year-ago period.
--SALES OUTLOOK: XPeng could guide for third-quarter deliveries of 130,000 units, below the consensus of 150,000 units, as the company may need some time to ramp up production of the new L03 SUV, Citi analysts wrote in a note. Investors will be watching how quickly XPeng can scale up production of the model without significantly cannibalizing sales of the lower-margin M03 sedan.
--EXPORTS: XPeng has been pushing exports hard this year, positioning overseas sales to become an increasingly important driver of growth and margins. That could mean exports accounting for around 20% of the company's deliveries in the fourth quarter, up from about 10% expected in the third quarter, according to Citi. Investors will be looking to see whether XPeng can accelerate its overseas rollout while maintaining higher-margin sales.
Comments