What changed
$XPEV — BUY 📊 | 6 MONTHS THESIS
🎯 latest | Rev $10.4B | EPS $-1.76 vs $-1.11 🔴
💡 Consensus expects continued margin pressure and delivery stagnation after a weak Q1; our variant view is that deliveries will accelerate starting April driven by new models, and gross margins will improve from 5% in Q4 2023 towards high single digits in H2 2024, exceeding the muted guidance implied by the post-earnings stock decline.
📉 Reward/risk: 2.6:1
🏢 Business Quality: 6/10 - Leading autonomous driving tech in China but weak brand profitability and high cash burn in hyper-competitive market.
📊 Valuation: cheap - EV/Sales (NTM) ~1.3x vs NIO 1.5x and Li Auto 1.8x, with revenue growth expected >30%; if margins recover to 10%, FCF yield turns positive in...
🔮 Catalyst: April–June monthly delivery reports and VW collaboration update
📊 Our read: BUY. Full analysis →
https://stockduty.xyz/s/XPEV0620