Analysis Report | NIO, Ctrip, XPeng! Target prices all significantly raised! How much more can they rise?

China Merchants Securities: Maintains "Buy" rating on Xiaopeng Motors, raises target price by 14.5% to HKD 110 from HKD 96

Based on the latest closing price of HKD 73.3, this price implies a 50% upside potential!

The bank stated that Xiaopeng Motors delivered 14,000 vehicles in August, a year-on-year increase of 42.9% and a month-on-month increase of 24.4%. It has achieved month-on-month growth for seven consecutive months and has delivered over 10,000 vehicles for two consecutive months. Among the new energy vehicle companies with sales exceeding 10,000 units in August, Xiaopeng Motors had the highest month-on-month growth rate.

The bank believes that the strategic cooperation between Xiaopeng Motors and Didi has complementary effects, which is beneficial for promoting sales in the transportation field, solving the problem of electric vehicle scale, reducing overall costs, and improving economies of scale. The bank expects that the production and sales volume of the G6 model will continue to increase, and the introduction of other redesigned models such as the G9 and P7i will further improve the company's fundamentals.

Credit Suisse: Maintains "Hold" rating on NIO, raises target price by 48% to HKD 78.2 from HKD 52.74

Based on the latest closing price of HKD 84.15, this price implies a 7% downside potential.

The bank stated that NIO's second-quarter performance fell short of expectations, with quarterly revenue declining by 17.8% to CNY 8.8 billion, net loss expanding by 27.8% to CNY 6.1 billion, and overall gross margin declining by 0.53 percentage points to 1%. The company guided for deliveries of 55,000 to 57,000 vehicles this quarter, implying a quarterly increase of 134% to 142%, which did not meet the bank's expectations.

The bank stated that the company still targets double-digit gross margins in the third and fourth quarters, and the company will not launch new car models next year. The bank has lowered its loss per share forecast for this year and next year to CNY 13.89 and CNY 10.16, respectively.

Nomura: Maintains "Buy" rating on Ctrip, raises target price by 13% to HKD 390 from HKD 344

Based on the latest closing price of HKD 302.2, this price implies a 29% upside potential!

The bank stated that even though the company's adjusted profit for the second quarter slightly exceeded expectations, it believes that the growth momentum of outbound travel revenue in the second half of the year will remain strong, mainly due to further relaxation of aviation capacity. The bank expects that aviation capacity will continue to increase in the third quarter, and the demand during the Mid-Autumn Festival and National Day holidays may be strong. It estimates that total revenue will increase by 98% year-on-year to CNY 13.7 billion. For the whole year, the bank believes that outbound travel revenue will recover to 60% of the level in 2019.

Great Wall Securities: Maintains "Buy" rating on Meituan

The bank stated that Meituan-W23Q2 achieved a core local business revenue of 51.19 billion yuan, a year-on-year increase of 39% and a quarter-on-quarter increase of 19%. The operating profit margin was 21.8%. The company has demonstrated strong resilience in terms of profitability in the face of competition from Douyin. On the one hand, Douyin and Meituan have different positioning, and on the other hand, Meituan has a longer operating time in the group buying sector and a deep accumulation in the commercial ecosystem, thus maintaining a stable profit margin under the premise of incremental growth.

The year-on-year operating loss narrowed by 23.5% to 5.2 billion yuan, and the quarter-on-quarter operating loss rate improved to 31.0%. The bank pointed out that the company's new business targets differentiated demands of urban population and has great development potential in the future. The company maintained a stable loss in Q2, and with a stable expansion pace, it is expected to become a profit growth point in the future.

The bank predicts that the company's revenue will reach 278.34/343.26/417.10 billion yuan in 2023-2025. The company holds a leading position in the local city service field and has a positive long-term value outlook for Meituan.

Barclays: Upgraded Oracle's rating from "hold" to "buy" and raised the target price by 19% to $150, up from $126.

If calculated based on the latest closing price of $123.98, this price implies a 21% upside potential!

The bank believes that the continued positive combination effect of better Software-as-a-Service (SaaS) and Oracle Cloud Infrastructure (OCI) will offset the impact of slower-growing businesses, thereby providing years of high-profitability and steady growth opportunities. "Oracle Cloud Infrastructure, to some extent driven by emerging artificial intelligence (AI) workloads, will be the key to the database and the overall story."