The Xpeng X9 electric MPV was displayed at the Beijing Auto Show on April 25, 2024.
CNBC | Evelyn Cheng
Beijing – China Electric Vehicle Company Xpeng Its shares soared after reporting improved margins and an upbeat outlook for second-quarter deliveries.
company’s Hong Kong listed stocks It was up more than 13% in early trading Wednesday. U.S.-listed stocks rose nearly 6% in U.S. trading on Tuesday after reporting first-quarter results.
Xpeng Motors reported that its auto profit margin rose by 5.5% in the first three months of this year, compared with negative 2.5% in the previous quarter. Auto margin is a measure of profitability – the higher the margin, the more profit the company makes on vehicle sales.
The company expects car deliveries in the second quarter to be 29,000 to 32,000 vehicles, an annual increase of at least 25%.
Xpeng Motors delivered 21,821 vehicles in the first quarter and 9,393 vehicles in April.
After the earnings release, Nomura analysts said in a note on Wednesday that they were reviewing their forecasts for Xpeng Motors.
“Overall, we see Xpeng Motors moving forward with its business plans and believe it may achieve some growth in the future,” the report said.
Analysts at Nomura Securities said: “At the same time, given the intensification of overall market competition, resulting in smaller companies being more vulnerable to the impact, we remain cautious and recommend investors to pay close attention to the launch of MONA brand next month of new models.
Like other companies looking to remain competitive in China’s electric vehicle market, Xpeng Motors is expanding its product lineup through a low-cost car brand called Mona.
The first Mona car, an electric sedan priced under 200,000 yuan ($27,890), is set to be released in June, with mass deliveries scheduled to begin in the third quarter, the company said.
Xpeng Motors attributes hundreds of millions of yuan in service revenue to its partnership with German automaker Volkswagen. In the first quarter, the overall service industry increased by 93.1% year-on-year to 1 billion yuan.
The Chinese company said it was establishing partnerships with car dealer groups in Western Europe, Southeast Asia, the Middle East and Australia to open new stores in the first half of this year. All told, Xpeng Motors said it plans to expand its sales network to more than 20 countries. That’s according to FactSet first-quarter earnings call transcripts.
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