Goldman raised the qualification of Xpeng and Child For costs of costs and improvements. They also assured that both companies have New product strategies while both companies sail in an intensely competitive domestic market.
The bank raised Xpeng to purchase from neutral and increased its au S24 target price from US $ 15.60, citing greater competitiveness of its vehicles, accelerated launches of models and costs materials of costs.
Goldman indicated that the efforts of Xpeng In organizational and supply chain restructuring they are beginning to show results, supporting their expectations of more sustainable volume growth and better profit margins.
The recent XPEng models, including Mona M03 and P7+, were classified among the best -selling cars in their segments, according to Goldman.
The company is also accelerating its product launch, planning introduce around 10 new or renewed models annuallycompared to one or two in previous years, helping to maintain visibility in a saturated market.
Cost reductions played a key role, and Goldman He pointed out that The company achieved significant savings through the redesign of components and sensor optimization.
The brokerage estimates that the lower material costs improved gross margins and high profitability in key models.
Nio: There was also a change in his qualification
Goldman also improved the qualification of Child Neutral from sale to early signals that recent operating cost cuts could relieve pressures on margins.
Slightly raised its target price Au $ S3.80 from US $ 3.70.
Since March, Nio implemented savings measuresincluding project cancellations, personnel reductions and integration between business units, with the aim of saving between 20% and 25% in operational expenses.
However, Goldman keeps caution on the growth of child volumemaintaining estimates below the objectives of the company due to a weaker demand of the expected and the growing competition in the industry.
He also pointed out concerns Continuous on cash flow and high levels of debt of the company, despite the recent capital injections.
Xpeng and Nio are among several Chinese manufacturers of electric vehicles that face increasingly reduced margins and volatile consumer demand while the market is flooded with launch of new competitors models.
Source: Ambito
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