Understanding the Market | XPENG-W fell over 3% after earnings as Goldman Sachs pointed out that its adjusted net profit for the third quarter was below expectations
XPENG-W's stock price fell more than 3% after releasing its third-quarter 2024 results, down 3.08% to HKD 50.35 as of the time of writing. The automotive sales revenue for the quarter was 8.8 billion yuan, a year-on-year increase of 12.1%; the net loss was 1.81 billion yuan, narrowing by 53.5% year-on-year. Goldman Sachs pointed out that although the gross profit exceeded expectations, the adjusted net profit was 13% lower than expected, and EBIT was also 2% below market expectations
According to Zhitong Finance APP, XPeng-W (09868) fell over 3% after its earnings report, dropping 3.08% to HKD 50.35 as of the time of writing, with a transaction volume of HKD 822 million.
In terms of news, XPeng released its third-quarter 2024 earnings, reporting automotive sales revenue of RMB 8.8 billion, an increase of 12.1% year-on-year; gross margin of 15.3%, up 1.3 percentage points quarter-on-quarter; automotive gross margin of 8.6%, an increase of 14.7 percentage points year-on-year; total revenue of RMB 10.1 billion, an increase of 18.4% year-on-year; quarter-on-quarter growth of 24.5%; and a net loss of RMB 1.81 billion, narrowing by 53.5% year-on-year but widening by 40.7% quarter-on-quarter. The non-GAAP quarterly net loss was RMB 1.532 billion, compared to a net loss of RMB 2.79 billion in the same period last year.
Goldman Sachs released a research report stating that XPeng's gross margin in the third quarter exceeded market expectations, mainly due to higher production scale reducing fixed costs per vehicle, as well as further recognition of revenue from Volkswagen's technical services. However, due to investment losses from long-term investments, XPeng's adjusted net profit in the third quarter was 13% lower than Goldman Sachs' expectations. XPeng's EBIT in the third quarter was also 2% lower than market expectations, which the firm believes is due to non-cash losses arising from fair value changes related to the acquisition of Didi's smart vehicle business